Internet Merchant Accounts - How to Choose the Best

Of all the elements of e-commerce, the internet merchant account remains the least understood and perhaps the most delicate component of building an online business. At the same time, there is a lot at stake in selecting a merchant account provider, and making a poor choice can result in numerous complications and unexpected log-terms costs. When it comes to accepting credit cards payments online, there is more that meets the eye-and it pays to understand the wider issues before committing with a provider.

With some providers offering shady solutions and many others pushing one-size-fits-all commodity merchant accounts, selecting the right provider-one that balances integrity and affordability- can be a daunting task. Complaints lodged against merchant account providers all have a familiar ring: sudden rate increases, long-term lock-in contracts, undisclosed fees and add-on charges, high monthly minimums, heavy rolling chargeback reserves, punishing chargeback fees, and surprise limits imposed upon your monthly revenue intake. A common adjunct to these problems is, quite logically, the inability to contact a customer service department when limits or complications grind business to a halt.

Ultra-low rates rarely equate with merchant friendly policies. Rather, scrutinize such rates critically and look at the total picture-from chargeback policies to monthly minimums to transaction fees. Look for hidden costs in the small print and look for ways a provider can 'pad your bill' with add-on fraud protection charges or 'gateway' fees. And make sure their structure corresponds comfortably with your business model and pricing strategy. Overnight approval, unsolicited e-mails ads and greedy pop-up application forms should also serve as warning signals.