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Setting up a merchant credit card
account
Dear Small Biz Adviser:
We are a cosmetic company and we are looking to set up taking credit
cards to help out our customers. Would you be able to direct us
into how to get started and who to contact?
Ava
Dear Ava:
Finding someone who will set up your business to accept credit cards
is easy. Companies that offer these accounts -- called "merchant
accounts" -- are everywhere. Go to your favorite search engine on
the Internet and type "merchant account" and you'll be overwhelmed
by the choices.
The hard part is making the right choice for your
business. You'll have to sort through a huge array of hardware and
software choices, and the prices range from puny to astronomical.
The right choice for you will depend on several factors:
- Are you selling online or offline? Online sellers
can expect to pay a premium because credit card fraud is more
common on the Web than in a retail store.
- How high is your sales volume? There are simple
and inexpensive options if you only make an occasional credit
card sale.
- Will you be selling from one set locale, or does
the equipment need to be portable?
The best thing to do is comparison-shop for the processing
service that meets the needs of your specific type of business and
the level of credit card charges you anticipate.
For a more extensive overview of the choices you will
need to make, see Bankrate.com's
series on merchant accounts.
I wish you well.
-- Posted: May 22, 2001
Bankrate.com writers base their answers on our
editorial content and advice of financial professionals. We make
no claims or representations about the accuracy, timeliness or completeness
of such content, advice or the answers provided to you. Our content,
advice and answers are intended only to assist you with your financial
decisions. However, by its nature such information is broad in scope.
Your financial situation is unique, and our content, advice and
answers may not be appropriate for your situation. Accordingly,
we recommend that you get different opinions and seek the advice
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