Obtaining a merchant account number to accept credit cards can help to increase your cash flow by getting you paid quicker (within one to three business days after the transaction) and spending less time traveling to the bank. To obtain a merchant account, you will need to select an offer from a merchant account service provider that best meets your credit card processing needs.

Identify Your Credit Processing Needs

You first need to assess your credit card processing needs. How many transactions do you do per month and what is the average value of each transaction? If you do a large number (over 100) of transactions of small dollar amounts (under $10) you will want to find a merchant service account with low transaction fees. Transaction fees are flat rates charged each time a credit card is processed and can range from 15 cents to 30 cents. If you only take credit cards via online, phone, or fax orders then you will want to find a merchant account with low discount rates for keyed transactions. Discount rates are charged as a percentage of the transaction and can range from 1.7 percent for swiped transactions to 2.9 percent for keyed transactions. If you process transactions of less than $2,000 per month, you may consider simply using PayPal to invoice your customers who wish to pay by credit card. There are no monthly fees for PayPal---you simply pay their 30 cent transaction fee plus a 3.5 percent discount rate. Other merchant service accounts can come with fees that typically are about $20 per month in addition to the transaction related fees. Once you have identified your needs regarding the number of transaction you intend to process, the type of primary type of transactions you expect to process (keyed versus swiped), and the monthly gross credit card sales you expect to process, you will know what costs are most important to you when deciding on a merchant service account.

Comparing Merchant Service Accounts

Once you have identified your needs, you can compare merchant service accounts to find which is the lowest cost for your particular business. You can compare up to four offers at once using the "Basic Rate Comparison Calculator." You will need your transactions per month and the average amount per transaction in addition to the discount rate, transaction fee, statement fee, and monthly minimum of each offer you have to compare. Once you have identified the best merchant service account for your business, complete the application and soon you will be able to process credit cards.

Source:

PayPal Transaction Fees

Guide to Merchant Account Services

More Information:

Basic Rate Comparison Calculator