Finding the best online merchant account provider

The best online merchant account provider ... That's what you want, and that's what you deserve. But it won't just land in your lap. You'll have to do a little research, a little shopping and a little comparing.

Of course, a little here and a little there can add up to a lot of time! This list is meant to get you heading down the road to finding the best online merchant account provider. A starting point, if you will.

An important note: Don't let the term 'online merchant account' fool you. These are NOT online-only merchant accounts. In fact, all of these services (with the exception of third-party processors) offer full retail and mail order/telephone order merchant accounts, along with equipment and software.

But all the services I recommend here can only be *found* online, as they are all ISOs (or actual underwriters) that operate on the web.

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Another year, another "Cream of the Crop" list! One thing stays the same though, year after year...

Reliability is KING! It is the most important quality when looking for the best online merchant account provider. Think about it.

Who cares how cheap your transaction fees are or how low you chargeback rate is if your payment processing service is down and you can't accept payments?!

Of course, price is an issue (though not to the extent we tend to make it). However, in this market, competition ensures that prices -- in general -- are similar across the board.

"So why even bother shopping around?"

Why not take the first one you like? Because, in a nutshell, each merchant account provider you deal with, from the local bank to the largest independent sales organization, will evaluate risk differently and consequently offer you differing price quotes.

That's why I make a list, and why you should too. By getting price quotes from several different services, you will, at the very least, know that you are paying a reasonable price wherever you go. And you may even find a bargain! 

After all, isn't that why you shop? To get a feel for what a good price to pay would be? How do you know what a good deal is until you explore the market?

Well if you do that for a toaster or a curling iron, then for Pete's sake, why wouldn't you do it for a credit card processing service?

Simple? Sure. Important? Absolutely!

To aid you in your shopping for the best online merchant account, I've ensured that all the services on the list allow you to apply for a price/package quote at no cost and with no obligation and (gasp!) will ensure that a living, breathing representative will contact you in 1-2 business days.

Caution (part 1)

Make sure you are only applying to be reviewed and talk to a rep and NOT ACTUALLY LOCKING YOURSELF INTO A CONTRACT! Believe me, I've heard a horror story or two. Either make sure that what you are filling out says "no obligation" or find their customer service number (it should be extremely easy to find) and call them for a price quote. If you're not absolutely sure, and you can't find a number, move on. That's a sure sign this isn't the place where you will find your best online merchant account.

Caution (part 2)

Do not apply with any service that requires up-front payment just to apply and be very wary of those with large start-up costs. Why? There are just too many fine services out there that will allow you to get a price quote and/or apply for free (and too many unscrupulous ones that look for up-front payments... and then disappear).

Obviously, there are many more payment processing services out there, but this year's "Cream of the Crop" list, like every year, is devoted to the best online merchant account providers that have been in business for years and have demonstrated the greatest durability, which results in ongoing reliability.

Please see each services website for more information (as any good shopper would do).

It is a good idea to print out the Merchant Account Fees article and have it with you as you are comparing fees and services.

And finally, when you apply with and then speak with representatives of these services, have this mindset: YOU are interviewing THEM. There are many services out there vying for your business in a very competitive market, so get the service you deserve!

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Cream of the Crop

Three critical points:

1. If you are just testing the waters online or just getting started and expect to have low volume while you ramp up (less than 50 transactions a month), give serious consideration to a third-party processor. There are no minimums, no credit checks, no start-up fees and no contracts to sign. Paypal.com is the established leader in the field. If you are an offline merchant looking to establish a presence online, this is the sensible starting place.
   
   
2. I always recommend a merchant who is serious about getting a quality merchant account start with a local bank, preferable one where there is a prior relationship. They seldom offer the best rates, but they have something even the best online merchant account providers don't: Face-to-face customer service. 
   
   
3. All the services listed here allow you to apply online for free, a critical factor if you are going to properly shop around and compare rates. To find the best online merchant account provider for you, apply to all of them, then compare the offers, test their customer service and do some critical thinking. Do not sign up with the first service you apply for. Be a smart shopper.

I have ensured that every provider on this list offers the following:
(and any merchant account you apply for should as well)

• Virtual terminal (mail order/telephone order)
• P.O.S. credit card swiper equipment (retail)
• Real-time processing (online)
• Shopping cart option (online)
• Integrated payment gateway
• Support for recurring billing
• Address verification and CVV2
• Toll-free 24-hour support
• Acceptance of Visa, Mastercard, Discover and American Express

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Top recommendations

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Charge.com

• Cost: 2.25% discount rate (for internet/mail/phone. 1.85% retail), $0.25 transaction fee, $10 statement fee, $17 gateway fee
• Pros: Over 10 years on the web and extremely well regarded in the industry. Good customer service. Low price guarantee. Great website.
• Bottom Line: Solid, reliable service at competitive prices.

Yahoo Small Business (Comparison chart)

• Cost: discount rate varies around 1.0%, along with a monthly fee. Set up to use Paypal to avoid more monthly fees.
• Pros: All-in-one online storefront builder. Good support and a large database of other users.
• Bottom Line: Everything you need to build an online store (but don't fool yourself. You'll need something like SiteBuildIt! to funnel in quality traffic.)

Cardservice International

• Cost: 2.33% average discount rate (internet/mail/phone), $0.25 transaction fee, $10 statement fee, $15 gateway fee
• Pros: Plenty of variety and impressive customer and tech services. Underwrites its own services.
• Bottom Line: A big, robust service with something for everyone.

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Also worth considering ...

• Electronic Transfer Inc.

• FreeAuthNet.com

• E-commerce Exchange

• AMS Merchant Services

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Remember, this is only a starting point. I can only recommend services I have researched. You have to do some digging yourself and find the best online merchant account provider for your business.

If you haven't already, use the search box below to scour the web for more merchant account providers.

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Web www.how-to-get-an-inexpensive-merchant-account.com

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