First determine the exact services you require from the merchant account provider. Ask yourself these key questions:

• What kind of an account do you need -- a business or retail merchant account?
• Do you want to open a high risk account or do you want an offshore merchant account?
• Will you need an internet merchant account, including a virtual terminal?

This self analysis is essential since the merchant providers will query you about them. Here are some tips to work around while thinking about answers to the above questions.

1) Figure out what type of solution your business requires -
* The Phone Solution - Most small and medium sized merchants use a dedicated phone line for their terminal. With a preferred processor, the terminals may be capable of dual processing through broadband or telephone, saving you money on multiple lines.
* The PC Desktop Solution – This software can be installed on most personal computers. It will connect behind a credit card processor’s firewall and allow you o type in a sale. This solution is commonly used in call centers and businesses that require recurring billing.
* The E-commerce solution – This solution is for online payments through a business''s website. It entails having certified gateways and shopping carts. E-commerce credit card processors may be third-party processors like PayPal, Google Checkout, etc. or ‘true'' merchant account processors like NOVA, First Data, Moneris, etc.
* The Retail Point of a sale terminal – Most people are familiar with this solution as a consumer. They are terminals that can have debit and/or credit cards swiped across them for instant approval. These terminals can be connected via phone, Internet and even normal cellular networks. These terminals are also the most mobile.
* Custom Built Point of Sale Terminals or Kiosks – This solution is one of the most expensive options available. If you have the money to invest, you can have a specialized POS or Kiosk designed for your business to accept credit card payments.

2) Contact a payment processing company accredited by the Better Business Bureau at www.bbb.org. A preferred processor can get 98% of merchant applications approved for lower rates. If a provider is accredited by the BBB, they can get this done more effectively and quickly. This option is better than getting your credit card processing services through a bank, which outsources processing and adds the cost to their fees.

3) A typical merchant account application will ask for the following:
* A domain registered to the account holder.
* Presence of an SSL (security) certificate.
* They may ask for a copy of the homepage and one or two product pages.
* All merchant account providers will need documents about you and your business. They will ask you for company papers, utility bills, a letter from the bank proving you are legit, your recent bank statements and a copy of your passport.