If you sell products or services through your own business, you may consider opening a home business merchant account so you can accept credit card payments. Offering the option to pay by credit card is a convenience most people expect, and it can increase the profits of your business. Before you open a small business merchant account, consider the following:
How Will You Sell Your Products or Services?
One of the first considerations is how you will sell your products or services. Will you lease a commercial retail space? If so, you will probably need a terminal to swipe the credit cards. If you plan to sell online, you need a credit card service that will integrate with your shopping cart and accounting software in addition to choosing an Internet gateway system. This gateway connects your online ordering system or shopping cart to a credit card processor. If you sell by mail order where the actual card is not present, you need a system that lets you m anually key in the customer's card number.
Bank, Financial Institution, or Third Party?
When opening a home business merchant account, you must choose a bank, financial institution, or third party provider. The advantages of a bank or financial institution include the ability to process larger volumes of credit card transactions with lower fees and a transparent checkout process for online payments where the customer never leaves the merchant's website when making a purchase. Many banks and financial institutions are open to negotiating rates and fees.
A small business merchant account might be more difficult to obtain with a bank or financial institution. They often require credit checks, consider how long you have been open and have restrictions on what they consider 'high risk' business. You may be denied an account or charged higher fees if you have challenges in any of these areas.
Commonly available online, third party providers offer the same services and secure credit card processing as banks and financi al institutions. It is often easier to obtain a small business merchant account through a third party provider, which is great for new businesses or businesses with low sales volume. A third party provider may be able to provide you with more personalized customer service because they work directly with your company. However, third party providers may charge higher rates and fees. Some third party providers do not require contracts, offering you the ability to cancel any time.
Whether you choose a bank, financial institution, or third party small business merchant account provider, one thing is certain: accepting credit cards will provide convenience to your customers that will result in bigger profits for your business.
Christine O'Kelly writes for the small business credit card processing experts at BluePay. BluePay makes opening a home business merchant account an easy and affordable solution for your business.
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