"Yes, I did select a vendor. I have to admit that my decision was quite difficult as two vendors in particular were extremely helpful and professional. I selected {extracted} because they provided me with the most customer service prior to my decision, but it was a close race with my second choice. Overall I would rate my experience as "Excellent" and I will certainly consider and value any future recommendations for my business needs." - Patricia, CEO

Choosing a Merchant Service Provider

According to surveys, well over 75% of American adults report using credit cards for regular purchases. With so many potential buyers using credit cards as a method of payment, accepting credit cards is almost a necessity in today's business environment. The best way to offer your customers the option of payment by credit card is to open a merchant account.

Opening a merchant service account is the easiest way to take advantage of credit card merchant services such as transaction processing, reporting, and returns. If your business operates predominantly over the internet, or relies on phone or online orders for sales, an online merchant account will allow you to process payments quickly and easily.

Merchant accounts act as the link between a customers issuing bank (the company that provides the credit card) and your business bank account. The process of obtaining a credit card merchant account is pretty straightforward

• Apply with providers. You can go through a broker, a credit card company, or a bank. Banks are the safest and most reliable option, though they don't perform services themselves- they refer or contract out with a third party processor.
• Provide financial history. Applying for an account is a bit like applying for a loan. The account provider bears the risk of chargebacks while transactions are being verified, and needs to know that your business has a reliable credit history.
• Set up processing methods. Usually, credit card merchant services will have a procedure in place for transferring batches of transactions to your own business bank account at the end of each day.
• Purchase equipment. You'll need a credit card terminal, or may be able to equip your existing POS system with the capacity to accept cards and link to your account.

Most merchant account services allow the option of leasing credit card equipment, and some even provide a terminal for free in exchange for a longer contract term or a specific service agreement. You have a few different options when it comes to hardware:

1. Traditional phone terminals: These terminals use a telephone line to transfer information to credit card merchant accounts. This method is reliable, but can be inconvenient if you have limited phone extensions.
2. Wireless terminals: These terminals use an internet connection to send information. Terminals can be remote, and can be taken to trade shows, community markets, or other off-site locations. Wireless terminals can be more expensive.

Costs of merchant services can vary, depending on your business. Usually, a merchants account will charge a per-transaction fee, where swiped or magnetic transactions cost less than keyed transactions where the card is not present. The charge is usually a few cents out of each transaction. The features you use will also impact the cost. Online payment services can transmit information quickly and efficiently, but might be more expensive. Ask a vendor for more details about specific costs.