Tips for Setting up a Mail or Telephone Order Merchant Account

• Get started early: While it usually takes only a few days to set up a merchant account in some cases it may take a little longer. It is a good idea to set up your merchant account a few weeks before you plan on using it. This way you can test all of the equipment and make sure everything is in order. Nothing could be more nerve wrecking than waiting for delivery of your credit card machine and software the day you plan to start taking orders.
  
  
• Your local bank might not be the right choice for a merchant account: While most merchants feel more comfortable dealing with there local bank, many people don’t realize that the majority of banks have little experience in dealing with merchant accounts. Most banks refer merchants to a third party processor and then receive a commission for doing so. Merchants can save a lot of time and money if they go directly to a processing company. Funds can still be deposited directly into your account at your local bank.
  
  
• Understand all of your account fees: When you are first given a quote for a merchant account some of the fees may seem a bit foreign to you. Take a few minutes to look over your application and ask questions. Once you understand all the fees it will seem as simple to you as your monthly phone bill. By doing this you will avoid any surprises when your first statement arrives.
  
  
• Be sure the rates you are being quoted are for a mail order: Since rates differ for retail merchants who physically swipe cards then for merchants who key in transactions for phone and mail orders you want to make sure that the rate you are being quoted is correct. Many merchants find that they are being quoted unusually low rates for mail order transactions. A good way to tell if you are being quoted an incorrect rate is that most retail businesses pay less than 2.00% for cards they can swipe through a terminal, while mail order business are charged significantly more for their transactions. Many merchants mistakenly sign up for a retail account with low rates and find themselves being charged much more since they aren’t physically swiping transactions.