by: Keith Baxter

Any smart business owner knows that accepting credit cards as a
payment option will dramatically increase revenues. Not only do
credit cards offer customers the convenience and ease of not having
to carry around cash or checks, it lends a sense of professionalism
to your establishment as well. The process of applying to become a
credit card merchant can be a bit confusing and frustrating, so
let's take a look at how it all works.

The Credit Card Account

The credit card account that you will use is called a merchant
account. These accounts are different from a regular business
checking account in that they are accounts that have been secured
through a bank that offers credit card processing. This account
enables you to process your credit card transactions through their
banking establishment. This is a safe and secure process which
provides both you and the buyer security and protection from the
beginning of the transaction right through to the end.

Since most of the merchant accounts are offered by a third party
vendor, you are not obligated to use any specific bank or
institution. You are free to choose the one that offers the options
that will work best for you and your company.

What you do need to pay attention to are the fees. These fees will
come in three different forms. First, the initial setup fee (pretty
self-explanatory), moving on to the percentage fee (the provider
will take a percentage of each transaction based on amount of sale),
and then ending with the monthly service fee. Read the fine print of
any contract before signing it. Pay attention to all three fee
categories, not just one.

Also, look for contract obligations. Some providers will offer you
great deals but will want you to sign on with them for a long period
of time. You need to be aware of what, if any, penalties will be
charged for getting out of the contract if things don't work out.

How Do I Actually Get Paid

Obviously, this is pretty important. If a customer has used a credit
card, no money has actually changed hands. Since more and more
customers are now using credit cards, how that money gets into your
account and how fast has become vitally important.

Any of the reputable merchant account providers will provide the
business owner with payment into their account within the first 24
to 48 hours of the initial transaction. Whether that customer has a
balance on that card is not a concern of yours. The bank will pay
you anyway.

If the customer disputes the said transaction, the bank is usually
under no obligation to pay the business owner, especially if that
dispute has been deemed acceptable. If a business owner has a high
number of legitimacy claims against them, the provider may just drop
them.

The majority of the time, though, things go as planned and the money
shows up in your account within a day or two.

About the author:
Keith Baxter made it his mission after college to educate as many
people as possible to the advantages and disadvantages of credit
through a widespread re-education initiative. You can find out more
about Keith and what he's up to at
http://www.credit-card-debt-consolidation.net