Most times, the services and charges for a merchant account may differ from one provider to another. In other instances, many merchants will offer you similar deals. The trick is to look into the fine print associated with each provider. The devil is in the details and it is imperative that you look at the fee structure (which generally includes monthly and transaction fees), the contracts and the customer service that you will get for your money.

Merchant account providers with low fees may be tempting, but they are not necessarily the best. Ask the merchant for a sample contract, and compare its terms and rates with other merchant banks. This will help you bargain and set your terms with the merchant account provider you finally choose.

The essential things to look at in a merchant account provider are:

1) Fees
-- Discount Fees: This is what you pay the provider for its service. It is usually a percentage of your sale, which can be between 2.25% and 3% per transaction. Keep in mind that these fees may differ for different types of credit cards (i.e. Visa, MasterCard, etc.).
-- Monthly Minimums: Verify if you will be charged a monthly minimum.
-- Monthly Statement Fees: A monthly statement fee should not exceed $25.
-- Miscellaneous Fees: These may be fees for the equipment or for processing or a service fee. Be very clear about each and every fee that you are going to be charged.

2) Turnaround Time
-- Deposits to Your Account: The proceeds of your sale should reach your bank account not later than 3 days from the time of sale. The turnaround time is typically best when your merchant account is provided by your business bank.

3) Length of contract
-- Look at the terms of the agreement. You do not want to get locked in to terms that you later discover are unfavorable, especially if you are new to the business.

4) Reputation and references
-- Look for references for the merchant account provider and people who have previously done business with them.
-- Check the reputation of its customer service and support, hours of operation, length of time in business and alternative payment processing options. In the event of a system failure, you want your provider to provide the best support in a short span of time.

While negotiating terms and conditions for a merchant account, always be polite and professional – you need the merchant account provider more than they need you. Offers that sound too good to be true are just that, untrue. So, keep an eye out for “fishy sounding” merchant account providers. Make sure that the merchant provider seeks information that would normally be required from you. If it does not, the provider may be a fraud and may want to run away with your money.