How to Set Up a Merchant Account?

Setting up a merchant account is relatively easy and quick. The first thing you need to do is contact a reputable payment service provider, such as PayPal or Google Checkout, and request an account. Once the provider has set up your account (this usually happens within 24 hours), you can start accepting credit card payments immediately. However, setting up a merchant account is not a one-time process. Even after your account has been approved, you will need to follow some procedures to maintain it.
First of all, you will be required to prove your business authenticity and identity. Therefore, the payment service provider will request some documents from you for this purpose. Usually, these documents include articles of incorporation, business license, and a federal tax ID number. You will also be required to sign a contract with the provider specifying some rules and regulations of your relationship with them.
The fee for setting up a merchant account varies depending on different factors such as company type, transaction volume, risks involved in transactions, payment methods used etc. However, it is safe to say that you will have to pay a monthly fee and transaction fee. A transaction fee usually ranges between $0.10 and $3.50 per each processed transaction, but merchant account providers may charge higher fees depending on the type of business and payment method used for processing payments.
In addition, some providers require you to purchase a credit card reader to use with your terminal. This is usually an inexpensive device that you can buy for around $50. Using the reader, you will be able to accept payments directly from buyers' cards which is very convenient and time saving.
If you want to save money and don't mind manually keying in transactions, then you can use your computer's microphone and special software to capture credit card information. This method is known as audio response or voice authorization and works with most major payment service providers available today.
To sum up, setting up a merchant account is a simple process that you can start this very minute if you have all the necessary documents on hand. However, it is important to keep in mind that maintaining a merchant account requires some time and effort as well. Therefore, before you start accepting payments online, be sure to research all the available merchant account providers and compare fees and services they offer.