How to set up an Online Merchant Account

Merchant accounts are not just about accepting payments electronically. The idea is to enhance customer experience and convenience. By catering to the needs of customers and offering them added ease, a business establishes an image of seriousness and commitment. Merchant Accounts are a powerful selling tool. Here are some important tips regarding the setting up of an online merchant account.

Fraud is a major concern that plagues online merchant services and accounts. Since Merchant accounts are all about convenience and reliability, the first thing to do is to decide on a gateway that has established a reputation by already processing payments for thousands of merchant accounts. Lots of companies offer gateways with excellent rates and great features, but no credibility. Opt for a gateway that is sure to work with little or no downtime.

Secondly, select a bank that understands and has experience with merchant accounts. Even though you may prefer to do business with a small, local bank or credit union, it would probably be a good idea to approach a company with experience and expertise as far as processing credit cards is concerned. This will save time, money and be safe.

It is very important that you set up your merchant account at least three weeks prior to starting accepting credit card payments. If not, you may find yourself waiting at a payment gateway loosing several orders in the meantime. Prevent business loss in the very first days by allowing plenty of time to set up and approve your merchant account.

Different merchant account service providers have different fees. The amount may vary too. There may be some hidden charges that are not disclosed in your merchant account application. It’s critical that you understand how much you’re being charged, what you’re being charged for, when you’ll be charged and how often. Typically there are annual fees, monthly fees, and per-transaction fees. But each of these categories can be broken down in additional ways.

Also, make sure that the rates being quoted suit your business model. Since, retail transactions are low- risk transactions, the rates associated with them are much lesser than the ones for online transactions. However, merchant service providers only advertise the lesser rates for retail transactions as their rates which can be very misleading for an e-commerce business. If you need to accept credit cards for a mail order or internet business, you can expect to pay significantly more.

Hopefully, the above tips will prove helpful while you set up your merchant account.

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