by: Steve Jones

It's a fact that traders who are in a position to accept credit
cards from their customers can expect to make more sales than those
who only accept cash transactions.

According to "Jumping Through the Merchant Account Hoops" by Khera
Communications, the average credit card transaction is $40, compared
to just $9 for cash sales. So, by not accepting credit cards you put
yourself at a huge business disadvantage compared to your
competition.

It may also surprise you to learn that credit card transactions can
cost your business less in transaction charges. A case study by
Coopers & Lybrand found that it costs, on average, 2.7% to process a
credit card transaction as compared to 4.8% for cash and 4.0% for
checks. The reason for this perhaps surprising statistic is that
cash and cheques require more handling by financial institution
staff whereas credit cards tend to be processed electronically for
the most part these days.

To offer a credit card payment facility to your customers you need
to set up a merchant account. Typically you will also need to have
equipment installed to accept the payments. If you wish to accept
credit cards Online you will also need to sign up with a payment
gateway such as CyberCash or VirtualNet to allow for instant
authorizations over the Internet.

The provider of your business bank account should be your first port
of call for a merchant account, but if you're looking to provide an
Online credit card payment service to your customers, it's important
that you make sure that any merchant account provider can
demonstrate a track record with accepting Online payments.

Applying for and being accepted for a merchant account can take
anything from a couple of days to a couple of weeks or more. Your
chances of being approved relate directly to your already-existing
business track record. That's why your own business bank is a good
first option, because they know you and your business better than
anyone else.

How much can you expect to pay? The cost of a merchant account can
vary enormously mainly based on the perceived risk associated with
the business applying for the facility and the area of business they
are involved in. Typically you can expect start up costs to be in
the $190 - $300 range with processing fees on individual
transactions from around 2% variable depending on sales volume. The
more business you're going to be putting through your merchant
account, the more you'll be in a position to negotiate with your
merchant account provider.

About the author:
Steve Jones is Website admin for
http://www.merchant-account.no1-source.infowhich provides all the
latest news and information sources on merchant accounts