Free Credit Card Merchant Account

If you have been doing business for a few years, you probably have heard about the benefits of opening a free credit card merchant account to expand the availability of your products and services. However, there are so many banks and other financial institutions competing for your business that you may be unsure which one to partner with in this exciting venture. One attractive option is to look for a free credit card merchant account offer.

Applying for a merchant account is easy and often can be handled online in a few moments’ time. However, it may be difficult to know which bank to choose. One may offer a lower transaction fee for credit card processing. Another may vie for your business by offering a no-fee installation of credit card processing equipment. But you could benefit more from a free credit card merchant account if the card does not come with hidden fees or limits.

Start by shopping for a merchant account with banks that offer low-interest rate credit cards or a no-rate credit card merchant account. If your favorite bank does not currently offer this type of deal, ask about one. Perhaps they will consider offering you a special deal if you are a valued customer. Otherwise, when considering a merchant account credit card from a relatively unknown institution, compare the terms of the card to those from other banks to make sure you get the best deal.

Sometimes a “free” credit card deal may actually hide or incur unexpected costs. For example, while you may not have to pay any up front costs when opening the account, like an application fee, you may be billed later for an annual membership fee that entitles you to use the credit card. Failing to pay this fee may result in the cancellation of your credit privileges. A free credit card merchant account should be free in every sense of its use, so ask about contingency fees or possible changes in terms later on as the economy shifts. You don’t want to get comfortable using the card only to find in a few months that you are being billed for services you did not expect to pay for.

A free credit card merchant account can be just the thing to launch you into e-commerce use, however. You can use your credit account to purchase credit card processing equipment or other innovations that will upgrade your company’s image to impress customers and draw in new clients. Or you can use your free credit card merchant account to experiment with other marketing techniques, attend conventions, or try a new line of merchandise or services.

If you have demonstrated skill in using business credit responsibly and in keeping with your business income and expenses, this type of credit card account may be just what you need to move your business forward and expand company interests or operations for your customers’ benefit. Check out all the terms and conditions when you apply to get the best free credit card merchant account.

Steps To A Merchant Account

It's a fact that traders who are in a position to accept credit cards from their customers can expect to make more sales than those who only accept cash transactions.

According to "Jumping Through the Merchant Account Hoops" by Khera Communications, the average credit card transaction is $40, compared to just $9 for cash sales. So, by not accepting credit cards you put yourself at a huge business disadvantage compared to your competition.

It may also surprise you to learn that credit card transactions can cost your business less in transaction charges. A case study by Coopers & Lybrand found that it costs, on average, 2.7% to process a credit card transaction as compared to 4.8% for cash and 4.0% for checks. The reason for this perhaps surprising statistic is that cash and cheques require more handling by financial institution staff whereas credit cards tend to be processed electronically for the most part these days.

To offer a credit card payment facility to your customers you need to set up a merchant account. Typically you will also need to have equipment installed to accept the payments. If you wish to accept credit cards Online you will also need to sign up with a payment gateway such as CyberCash or VirtualNet to allow for instant authorizations over the Internet.

The provider of your business bank account should be your first port of call for a merchant account, but if you're looking to provide an Online credit card payment service to your customers, it's important that you make sure that any merchant account provider can demonstrate a track record with accepting Online payments.

Applying for and being accepted for a merchant account can take anything from a couple of days to a couple of weeks or more. Your chances of being approved relate directly to your already-existing business track record. That's why your own business bank is a good first option, because they know you and your business better than anyone else.

How much can you expect to pay? The cost of a merchant account can vary enormously mainly based on the perceived risk associated with the business applying for the facility and the area of business they are involved in. Typically you can expect start up costs to be in the $190 - $300 range with processing fees on individual transactions from around 2% variable depending on sales volume. The more business you're going to be putting through your merchant account, the more you'll be in a position to negotiate with your merchant account provider.