Done right, the process of accepting credit cards requires virtually no technical knowledge at all, and only a very modest outlay of capital.

Firstly you create the individual pages of your site which list the products you have for sale. Then you create a thank you page for your order page(s) to be shown after a successful purchase.

For “real world” products this would simply thank the customer for their order, inform them of when their order will be shipped, and provide contact details incase of a query.

For a digital product – one that can simply be downloaded over the Internet rather than being physically shipped – you can provide download instructions for the product too.

Then you sign up with one of the multitude of specialist online credit card processing companies. There are literally hundreds to choose from – and there’s almost certain to be one that will fit your business perfectly.

Behind a password-protected area, in your own private section of the site provided by the credit card processing company when you chose them, you can then set up the descriptions and prices of your products, as simply as typing in values. Literally product 1 is called “X” and costs “Y”. Job done.

Finally once you’ve typed these details in your password-protected site will generate an order form for you automatically and give you the address of it. That’s right – no need to make your own – it’s done for you.

Simply paste this website address into your webpages where you’d like to give your visitors the opportunity to “Buy Now”, inform your password-protected website where your thankyou page is (where do you want visitors to go after completing a purchase at your site?) and you’re off.

Most providers will allow you to place trial orders, with imaginary credit card numbers, just to test to your satisfaction that everything is running according to plan with your merchant account and ordering system.

Once live, you can log back into your password-protected site and check your orders, customer details, and of course, how much you’ve earned.

The processing company will take a small amount out of your profits for the service it has provided to you and payment is then sent either by check or deposited automatically into your account on a regular basis, depending on the provider you use.

It really is that simple that even a complete technophobe can be set up in less than 7 days so give it a try and prove to yourself how easy (and profitable) it is.

Credit card processing can be a confusing subject. Before you jump in with both feet lets give you an introduction; What merchant accounts are, what information is needed to obtain your merchant account and rates/fees involved.

What is a Merchant Account?

A merchant account is a special account that is setup for a business to accept and process credit card orders.  After processing a customers credit card the transaction goes through a series of complex stages.  The money transferred through the merchant account is then deposited into the business’s checking account within 2 to 3 business days.

Requirements for a Merchant Account

Getting important information together ahead of time will ensure that you breeze right through your merchant account application process.  Here’s what you may or may not (depending on the provider) need in order to obtain your merchant account:

Business checking account (some providers set you up with one)

A copy of a voided check (if you use your own business checking account for funds to be deposited in)

Articles of incorporation, business license or reseller license. (A ‘Certificate of Assumed Name’ from your county Register of Deeds office may be all that is required. These only cost around $8.)  The purpose of this is to prove you are a legitimate business.

Pictures of business office and location (this extra step can save you money in credit card processing costs)

Have a web site (if you want real-time processing)

Photocopy of your return policy information

Provide trade references

Photocopy of recent tax returns (may or may not be needed depending on monthly sales volume you expect through your merchant account)

Site inspection (have a photographer come in and take pictures of your inventory). Only a handful of providers still require this.

A photocopy of your drivers license

Explanation of Credit Card Processing Solutions

In order to process credit and debit cards through your merchant account, you need to decide which processing solution is right for you.

Retail Swipe Terminal – This particular solution is for retail and storefront merchants who see their customers face-to-face.  This type of solution incurs the lowest merchant account processing fees since you actually are able to swipe the customers credit card through the terminal.  It is believed that orders that are swiped have a lower fraud risk, hence the reason for the lower processing fees.

Real-Time Processing – This is the solution for businesses on the Internet.  Real-Time allows you to automatically process credit card orders through your merchant account with no assistance needed on your end.  Everything is automated, and the funds transferred into the merchant account, from the cardholder, is deposited into your business checking account, within a few days.  All Real-Time solutions are secure and the purchase of a secure certificate is not usually required.

Virtual Terminal – If you are a merchant on the Internet and expect to receive orders via phone, fax or mail then getting a Virtual Terminal solution (along with a Real-Time processing solution) is the best route to go.  The Virtual Terminal is a secure website where you login and manually type in a customers credit card information.  Once the information is submitted, it is securely processed and funds are then deposited into your merchant account within a few days.  A Virtual Terminal can be accessed securely from any computer connected to the Internet.  Most all Real-Time processing solutions also come with a Virtual Terminal at little or no additional cost.  Virtual Terminals can also double as good mobile processing solutions.

Boost Your Business With A Merchant Account

It’s a fact. Companies who accept credit card payments for goods and services tend to generate higher revenues than those who only accept cash. According to industry statistics, the average credit card sale is $40 versus just $9 for the average cash sale.* If that isn’t enticement enough, consider the disadvantage you may face if competitors offer credit card payment options and you do not.

“These days, the credit card payment option is a must, whether you have a physical retail outlet, take telephone orders or sell products over the Internet,” says Diann Joblonski, a relationship manager, at Michigan Bankard Services, a leading merchant card processor serving over 30,000 businesses nationwide. Besides the potential revenue boost, credit cards may well be a cheaper alternative to cash and checks. In a case study prepared by Coopers & Lybrand, credit card processing costs average 2.7% of any transaction, checks 4.0% and cash 4.8%.** These figures make sense when you consider how many times paper money and coins must be counted and recounted by different individuals. While each business would vary in that respect, cash and checks still require more handling than plastic alternatives.

Establishing A Merchant Account

To offer the credit card payment option, you need to set up a merchant account-a bank account established by your company to receive the proceeds of credit card purchases. Typically, along with the account, you will also need to lease equipment and software to facilitate the transactions and ensure payments flow to your operating account. The process is slightly more complicated if you wish to accept credit cards online. In particular, you will need to sign-up with a payment gateway such as CyberCash or VirtualNet. These services allow for real-time credit card authorization for online transactions. It is essential that the payment gateway you choose is compatible with your software and financial institution so transactions flow properly.

Any number of financial institutions offer merchant accounts, but you should look for a provider who has demonstrated expertise in working specifically with small and growing businesses. These organizations can often structure accounts faster and at better rates than those who cater to larger companies. As you shop around, you should also look for institutions that work with customers to combat fraud and reduce chargebacks. And if you are conducting online transactions, you will want to work with a provider who has expertise in setting up and processing Internet merchant accounts.

The next step is the application process which can take anywhere from 48 hours to two weeks or more. Your chances of being approved relate to the nature of your business and the credit rating of your business and/or its principal owner(s). While existing retail establishments are the easiest to be approved, mail order and Internet businesses, with their higher rates of chargebacks and fraud, pose more of a challenge. “We look at the merchant, the nature of the business or the product, the refund policy, and the business financials or a sole proprietor’s own credit history,” states Joblonski. The cost of a merchant account will vary based on the perceived risk a business poses.

A Word About Costs

As you shop for a merchant account provider, you should be mindful of the costs involved with establishing and processing a merchant account. “You can expect to pay between $190 to $300 in start-up costs which includes the application, setup and equipment and rental lease deposits,” notes Joblonski. Processing fees can range from around 2.0% of annual sales volume for a retail establishment to 2.75% of annual sales volume for online transactions. Additional fees may also apply. Ask your merchant account provider for a complete list of fees so there are no surprises.

Putting It All Together

Congratulations, you can now accept credit card transactions. But are you maximizing the benefits of those proceeds? Maybe not, if those funds are being routed to a bank account that pays no interest on that money. Worse yet, you may have to wait a full month to get details on those credit card transactions, and have to pay for the privilege.

Is there a better way? Yes. Some financial institutions specialize in providing value-added merchant account services. For example, OneCore, a leading provider of online financial services for small business, pays money market rates on credit card proceeds. You can also view batch transactions (and transaction details) online by the next business day, free of charge.