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Online Business L(a)unch™ > Setting Up a Website: Accept Credit Cards > Merchant Account

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Credit card processing software ($350 -$1000 to purchase or $29.99-$50.99/month to lease)

In order to enter credit card data and obtain authorization for each charge you will need software which allows you to do that. The software is installed on your computer and connects with the clearinghouse through the dial-up modem.

You have two options: to purchase software or to lease it. From my experience purchasing is much better solution. The software usually costs $350-$1000 and the price can be negotiable even if customer service representative tells you it’s not. Always try to negotiate!

Remember, merchant account providers need your business much more than you need their - there are so many  providers over there! Always keep it in mind. 

With a lease you'll end up paying for the software 3 times or even more than it is really worth. Many merchant account providers require you to sign a 48 month lease for $29.99 - $50.99 per month.

Beware: monthly payment amount your provider shows you does not include your state sales tax and the amount charged for the damage/loss waiver that can easily add $5-$15 to your monthly payment.

And after making all these monthly lease payments you don’t even own the processing equipment! Also merchant account leases are non-cancelable so once started they’re impossible to get out of. Even if you go out of business you still have to pay for the software until the last penny has been received by the leasing company.

In some cases lease company could even continue charging you after the 48 months of lease have passed  because somewhere on your leasing agreement (usually in very small writing) they say that you should contact them one month prior to the end of the lease, or you can just let them keep charging you. Bottom line is: stay away from leasing if possible! 

 

2. Customer service and integrity of provider

Well, it’s important to get great rates and fees but they are simply a part of the big picture. Flexible policies and outstanding customer service is essential in choosing the best provider for your unique business needs.

Remember, communication is critical for long-term success and smooth transaction processing. Your time is precious so you don't want to spend long hours waiting for response and getting constant busy signals!

So make sure your merchant account provider has reliable customer service and able to answer all of your questions and resolve your problems promptly.

There're the most important aspects to consider:

  • 24/7 availability

  • Toll-free access number

  • Hold time no more than 5 minutes

  • Quick (24-hour at most) response to e-mail inquiry.

  • Friendly, helpful and knowledgeable customer representatives

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