Choosing the best merchant account provider

It seems like there are millions of credit card merchants out there - how can you find the best merchant account provider? Here are a few tips.

Obviously price is an important factor in choosing a merchant account provider - but it should not be the only factor you consider. There are a lot of less-than-reputable merchant services providers out there who will try to lure you in with low rates, then stick you with bad service or hidden charges.

Customer support is essential - problems in credit card processing can quickly impact your bottom line. The best merchant account providers will give you multiple referrals from current clients. Request referrals to business like yours in size and industry, then ask these important questions:

• Do they have to wait long before reaching a customer support rep?
• Are their needs serviced quickly?
• How does the provider deal with chargebacks?

Also ask the provider about their level of support - do they have phones staffed 24 x 7? Do they charge per incident?

For online transactions, the best merchant account providers offer secure ordering through SSL (secure sockets layer, a widely-used web standard for security). Setting up your own secure site is expensive and technically challenging.

Finally, if you are not using a bank or financial company you recognize, make sure you verify that the company you are investigating is legitimate. Contact the Better Business Bureau to check the merchant account providers' status if you are unsure. Even if you find them on the Web, the best merchant account providers should quickly give you a physical address (not a PO Box) and a phone number. You can also learn more about the different services and products providers offer by researching in-depth company profiles.