Merchant accounts allow you to accept money from your customer's credit card, which is a VERY useful feature!

Banks do provide merchant services, but not usually to smaller companies. Most people go through an independent organisation, of which there are many examples on this site.

A swipe terminal or some software will be needed to process the credit cards. You usually have to buy or rent these from your merchant account provider. Aim for something that is secure and easy to use - it goes without saying really! If you plan to buy the software separately from your merchant account, make sure it is fully compatible first.

There are special requirements if you wish to accept credit cards at your web site. See the Accept Credit Cards At Your Website page for full details.

Always read the terms and conditions carefully! Different companies use words to mean different things. The sales talk on the web sites is there to encourage you to choose the company. If you want to know the real facts, you have to read the small print.

Do not expect the money to appear in your bank account instantly. The term "real time processing" usually means that the credit cards are verified quickly, not that the money is transferred instantly. The time between a transaction being initiated and you getting paid is dependent on a variety of factors, which may include: Which merchant account you choose, your credit rating, the risk associated with your product/service and which credit card your customer uses.

There is no such thing as the perfect merchant account. You will never find one that has all the features you want at a low enough price. If you think you have found your dream provider, expect some disappointments - there will always be delays and problems. Things rarely turn out exactly as you thought they would.

You can never learn everything you need to know by reading guides like this. A better idea of costs and optional features can be obtained by carefully comparing two or three merchant account providers. Try the top merchant accounts first.