Pitfalls in a small business merchant account
If you are a startup which is getting online for the first time, you will need to accept credit cards a method of payment. To do this you need a small business merchant account. This is not difficult at all and therein lies the problem.
With hundreds of merchant account providers around, it is easy to just pick one and go with it. The problem here is what you will end up paying for that choice. Remember, this is business and no one is going to do you any favors or do anything free for you. Handling a process as complicated as processing credit cards doesn’t come cheap. In fact, if you are not careful it can even drive you bankrupt.
If you want toaccept credit cards online, first learn as much as you can about merchant accounts. Then learn more about the fee structure of a credit card merchant service. Once you know the general structure, you can start evaluating each individual provider’s charges. As you learn more you will become aware that these providers charge separately for credit card, debit card and other types of card processing. It is up to you to figure out if you need all of those services and what type of package you require from one of these providers.
Try to find one that is flexible and that has a good reputation. Look online for reviews and guides to help you through this process of selecting a merchant account provider.