If you’re going to do business on the web you will face the decision of whether or not to get your own merchant account. A merchant account is simply a way for you to accept payment for your goods or services using a credit card or e-check.

Most people can simply get a merchant account through their local banks. There are also providers of merchant accounts to be found on the Internet specifically for Internet ecommerce so these might be a better choice. You should check out all possibilities to get the best rates.

In addition to a merchant service provider you may need to sign up with a payment gateway service, a middle-man that facilitates the exchange of payment information that takes place on your website. Think of the payment gateway provider as a “cash register.” When the consumer at your site enters the encrypted information into the form on the web, the “cash register” – i.e., the payment gateway sends the encrypted info to the acquiring bank and to the issuing bank. Sounds complicated but all this happens in about 3 seconds!

Okay, now that we understand a little of the process let’s take a look at what questions you should ask of a prospective merchant account provider:

1. Have any complaints been filed against the provider?

2. Do they offer 24 hour phone technical support every day of the week? This is vital to your business.

3. What are the costs associated with obtaining and operating the merchant account?

4. How secure is their system?

5. What kind of contract are you required to sign? Many merchant service providers require a 3 year contract. That means you cannot change to another provider without penalty. Be careful of this. It’s no fun to get locked into a contract you cannot get out of.

6. Do they provide their own payment gateway service, or is this an extra cost?

7. What to they charge for “charge-backs”?

8. Do you need any special equipment? If so, is there a charge for this?

Need more help? Just do a search on “merchant service providers” in Google and you should find one that meets your need. Charge.com gets pretty good reviews as a merchant account provider.