There are several financial services that offer merchant accounts to businesses, but finding the right one for your small business requires some amount of research and check on the merchant themselves.

Since most private banks find it a huge risk to offer small businesses merchant accounts directly, most small enterprises have to use third party providers to obtain it. Different merchant account providers will have different regulations for the account and their fees are bound to vary. While choosing a merchant account provider, one must also check the compatibility of your merchant’s gateway system with your shopping cart software. Not all shopping cart software works well with the interface of all gateways, through which credit cards are processed.

Here’s what to expect when applying for a merchant account:
If you are a business with a physical office, the merchant account provider will most likely want to send a representative to verify its existence and gather evidence of the business (like pictures). If you are a website or online business this protocol will be followed with your personal property (like your residence) or the place from where you claim you work. You may also have to furnish copies of previous years’ tax returns, a copy of your business license or certificate of doing business; and if you have been doing business previously, a copy of your statements of profit or loss. These checks are conducted to prevent fraudulent activities.

If the merchant account provider accepts your business as a viable customer, you will also have to provide them with access to your bank account, since they will need to deposit or withdraw funds.

Customer service:
Always look for customer referrals, buzz about the merchant on blogs, forums, business newsletters and publications. If there is a problem with your merchant account and it is not fixed as soon as possible, it could hamper productivity and badly affect your bottom line. Try and look for the following in the referrals and reviews of the credit card processor: the wait time, live customer support v/s automated support, servicing quality and treatment of charge backs.

Background check:
Conduct your own background check for the merchant account provider and try and verify their claims and existence. There is no shortage of people who set up fraudulent companies just to make a quick buck. Always, get the details of a physical office address and a phone number of the account provider to check the legitimacy of the organization. Besides, it always helps to have that information in case any future issues arise.

Comparable fees:
Make sure the rates are competitive, but not too cheap. If you think you found THE crazy low deal, you’re probably going to end up with really poor service. Also be informed and aware of all other costs that you may incur – application fees, service charge, transaction fees, fixed fees, discount fees, termination fees and other miscellaneous charges. You do not want to be caught by surprise when there is a huge rip in your pocket.

In choosing a credit card service provider it is imperative to understand the overall implications and service provided by them. Use your current or projected sales data to forecast what your internet merchant account costs will be and plan accordingly. This will help you save both – time and money.