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