Boost Your Business with a Merchant Account
Companies who accept credit card payments for goods and services tend to generate higher revenues than those who only accept cash. According to industry statistics, the average credit card sale is $40 versus just $9 for the average cash sale. These days, the credit card payment option is a must, whether you have a physical retail outlet, take telephone orders or sell products over the Internet .Besides the potential revenue boost, credit cards may well be a cheaper alternative to cash and checks. While each business would vary in that respect, cash and checks still require more handling than plastic alternatives.
Establishing a Merchant Account
To offer the credit card payment option, you need to set up a merchant account-a bank account established by your company to receive the proceeds of credit card purchases. Typically, along with the account, you will also need to lease equipment and software to facilitate the transactions and ensure payments flow to your operating account. The process is slightly more complicated if you wish to accept credit cards online. These services allow for real-time credit card authorization for online transactions. It is essential that the payment gateway you choose is compatible with your software and financial institution so transactions flow properly.
Any number of financial institutions offer merchant accounts, but you should look for a provider who has demonstrated expertise in working specifically with small and growing businesses. These organizations can often structure accounts faster and at better rates than those who cater to larger companies. The next step is the application process which can take anywhere from 48 hours to two weeks or more. Your chances of being approved relate to the nature of your business and the credit rating of your business and/or its principal owner(s).
A Word about Costs
As you shop for a merchant account provider, you should be mindful of the costs involved with establishing and processing a merchant account. You can expect to pay between $190 to $300 in start-up costs which includes the application, setup and equipment and rental lease deposits. Ask your merchant account provider for a complete list of fees so there are no surprises.
Establishing a Merchant Account
To offer the credit card payment option, you need to set up a merchant account-a bank account established by your company to receive the proceeds of credit card purchases. Typically, along with the account, you will also need to lease equipment and software to facilitate the transactions and ensure payments flow to your operating account. The process is slightly more complicated if you wish to accept credit cards online. These services allow for real-time credit card authorization for online transactions. It is essential that the payment gateway you choose is compatible with your software and financial institution so transactions flow properly.
Any number of financial institutions offer merchant accounts, but you should look for a provider who has demonstrated expertise in working specifically with small and growing businesses. These organizations can often structure accounts faster and at better rates than those who cater to larger companies. The next step is the application process which can take anywhere from 48 hours to two weeks or more. Your chances of being approved relate to the nature of your business and the credit rating of your business and/or its principal owner(s).
A Word about Costs
As you shop for a merchant account provider, you should be mindful of the costs involved with establishing and processing a merchant account. You can expect to pay between $190 to $300 in start-up costs which includes the application, setup and equipment and rental lease deposits. Ask your merchant account provider for a complete list of fees so there are no surprises.
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