Merchant Account Review

In order to conduct any commerce over the Web involving credit-card transactions, you must have what's known as a merchant account. This is an account with a bank that processes the credit-card sales that you make, and settles them on a periodic basis (usually daily, or on-demand). The proceeds of the sale are then deposited in your business checking account. The merchant bank makes a profit providing this service by charging a discount rate, which is a percentage of each sale, and often a nominal per-transaction fee. Typical rates for small, virtual businesses are a 2.5–3.5 percent discount rate with a $.20 to $.30 per-transaction fee.

When looking for a merchant account, keep the following in mind:

Application fees should be nominal—less than $50.

Avoid firms that require you to sign nonrevocable "leases" of transaction-processing software or hardware terminals that are three to four years in length. Software is available for purchase, or for a monthly use fee by application service providers, and terminals can be purchased on the open market and reprogrammed remotely by your provider.

Unless your business is incorporated and has established business credit, the decision to open a merchant account will be made based on a review of the business owner's personal credit. It is possible to get an account with less-thanstellar credit, but a good credit rating of your own will allow you to get an account with a well-respected firm at a competitive discount rate.

The listed sites will give you a lot of good information.

Merchant Account Provider	Plans	Application Fee	Discount Rate	Per-transaction fee	Monthly Fee	Features
Charge	Credit card Processor	$0.00	1.26%	$0.15	$0.00	FREE Shopping Cart Software FREE Application FREE Technical Support
Electronic Transfer	Internet Processing	$0.00	2.25%	$0.25	$20.00	Free Web Shopping Cart Free Shipping and Handling Charge Free Recurring Billing
Merchant Express	Merchant Accounts Express	$0.00	2.27%	$0.24	$0.00	Suitable for retail, professionals, trade shows, mail order, telephone order, Internet based, and home based businesses.
Paypal	Paypal Merchant Account	$0.00	$0.00	2.9% + $0.30 USD	$0.00	No technical skill is required. Third party processor Paypal payment merchant account is must for online business
Network Solutions	ECOMMERCE POWER PACKAGE	$0.00	2.09%	2.19% + .30	$34.99	Knowledgeable merchant services provider with more than 15 years in the field. One-stop shop, including merchant account, gateway services and tech support
Network Solutions	RETAIL BRICK AND MORTAR PACKAGE	$0.00	1.69% + .20 cents per transaction	1.39% + .20	$25.00
Web Domain Design Hosting	Standard U.S. Merchant Account	$59.99	2.59%	$0.35	$0.00	Start receiving payment within 24-72 hours.
	Specialty Merchant Account	$198.99	2.39%	$0.30	$0.00
	International Merchant Account	$694.99	4.95%	$0.40	$20.00