How to Compare Credit Card Merchant Services for Online Business

When you are ready to begin accepting credit cards in your small internet business the most important thing you will need to do is to compare credit card merchant services. Usually comparing online credit card merchant services is a bit easier than comparing those for other types of businesses. There are a few great online services you should certainly check out and compare them to smaller or lesser known credit card merchant services. When comparing you should not just compare rates, you should also compare the service as a whole. There are several websites online that do this for you. These sites can be invaluable at times, but just be aware that some of the information can be skewed depending on the site you are on.

Making a comparison chart may be the best way for you to choose your credit card merchant services. You can set up a chart easily on your computer or hand write one if you prefer. Some things you will want to make sure you add are all the fees, rates, limits, and support. Before adding information about a particular credit card merchant services company, make sure the information is the same on at least 2 sources. If in doubt, give the company a quick call.

One of the most important things to have on your chart is a comparison of the registration fees. Registration fees can be nothing or several hundred dollars. The registration fee is mandatory and even if they say there is no registration fee, that money that would be the registration fee is spread to other fees throughout the structure.

Another important thing to add to your chart is the gateway fee. Again, this is mandatory for all internet merchants. This fee can vary greatly depending on the service you choose. Lower fees here will again mean that prices may be spread throughout the rest of the charges. This fee is charged for use of the gateway service online. There can be hidden fees here so be aware if you see one or two that are more expensive than the others on your chart. Those companies may have added features like a shopping cart into this fee. You need a shopping cart, so that’s ok, but it may not be a fair comparison. The lesson here is to know what is involved in each fee.

The statement fee should also be compared. Usually ranging from $0 - $15, this fee is charged to your company for running the monthly statement. This one may or may not be mandatory, which means you may be able to negotiate this one away.

This discount rate and transaction fees are the ones you should really compare if you compare nothing else. These are the fees that are charged per transaction. The discount rate is a percentage of the customer charge that you must pay back to your credit card merchant services company. The transaction fee is a small fee, about $0.30, you must pay for every credit card transaction. There are many other fees to compare as well. Only by comparing can you find the best service for you.