With
a little more than 51 percent of Americans carrying two or more
credit cards according to a 2012 report by Experian, a
credit-reporting agency, any small business owner is smart to at
least consider accepting credit cards as a form of payment. Whether
you run your company from an online store or a mom-and-pop shop, a
credit card merchant account is an important asset to your business.
You have numerous options for setting up an account to accept credit
cards from customers—the decision depends on how you plan to "meet"
with your customers.
Step
1
Determine
the most common place where you'll come into contact with your
customers—in person, over the phone, or on a website. This decision
is key to determining the type of merchant account you should seek.
Step
2
Choose
a traditional merchant account if you plan to take credit card
payments from customers at an established location. This is the
option for a standard brick-and-mortar business. With this merchant
account you need electronic credit card swiping equipment.
Step
3
Choose
a mail or telephone (MOTO) merchant account if most of your customers
call in to purchase items. This is common for businesses that
advertise on the radio or television and solicit phone orders. You
can enter the customer's credit card information on an electronic
terminal (no swiper necessary) or by using online processing
software.
Step
4
Choose
a merchant account that establishes an online gateway or virtual
terminal so that you can take credit card payments from customers on
your website. With this type of merchant account you do not need any
physical equipment other than your own computer to view payments.
Step
5
Choose
a cell phone or mobile merchant account if you plan to accept credit
cards from customers in person while on the road at trade shows and
fairs. The only equipment you need for this type of account is your
cell phone. Some merchant services providers also offer wireless
credit card swiping machines that you can use with a wireless
internet connection.
Step
6
Select
a merchant services provider who offers the type of account you need.
Examine the transaction and processing fees associated with the
service—merchant services providers commonly charge a percentage of
the sale, a flat per-transaction fee and a regular monthly fee to
maintain the account.
Step
7
Fill
out the application for the merchant account that meets your needs.
You'll have to provide your Social Security Number so that the
company can perform a credit check. If approved, you'll receive a
package via snail mail or email with information about how to set up
your payment acceptance device and start accepting payments. You'll
also receive a merchant number unique to your account. If you have to
purchase equipment to go with your merchant account, your sales
representative will guide you on the appropriate machines to buy.
