Home Based Business Merchant Accounts

With so many people starting and running businesses out of their homes, there has been an increase in the availability of merchant account providers for home business owners.  Even if you have been operating without a merchant account for quite some time, there are many reasons why you should look into having the ability to accept credit cards as payments.  Many consumers recognize businesses that accept credit cards as businesses that can be trusted.  One of the key requirements to turn a potential customer into a paying customer is to gain their trust, so you can see how having the ability to accept credit cards as a home based business can be extremely beneficial!  In addition, some businesses report up to a 400% increase in sales after accepting credit as a payment option.

What are Home Based Merchant Accounts?

A home based business merchant account allows you to accept credit cards from your customers as payment.  They are accounts that are set up for business owners through an Independent Sales Organization (ISO) or bank that handles the processing for you.  Independent Sales Organizations can typically help individuals with little or less-than-perfect credit accept credit cards, while bank merchant accounts might have higher requirements for approval.

Since all home based businesses have a different set of requirements and needs, there is no one-size-fits-all approach to merchant accounts for home based businesses.  You should consider things prior to signing a contract with a provider, including:

• How you plan to sell your business products or services? (online, in person, at craft fairs, etc)
• How you will connect with the credit card processor?
• What fees can you expect to pay?

How You Sell Your Business Products or Services

An important factor for selecting a merchant account provider is the actual way in which you sell your products or services.  Will you operate primarily in an online environment?  Will you take orders through mail order catalogs?  Will you attend trade shows, craft fairs and flea markets that require in-person credit card processing capabilities?  The answers to these questions are important in deciding the type of merchant account you need, and therefore the actual provider you decide to open an account with.

How Will You Connect with the Card Processor

Most home based businesses will have web site credit card processors.  This means the business owners require an internet gateway system to handle the connection between the ordering system and the processor of the credit cards.  The processors actually deposit the funds into your account, so it's important that you have a reliable connection to transfer the data from your ordering system to them.

What Fees Can you Expect to Pay

Your last step for determining what home based merchant account provider to go with should involve a comparison of the different fee structures.  Merchant account fees vary greatly from one provider to the next, but are typically based upon the same components.

Basically, you will decide whether to pay an annual fee and lower per-transaction fees, or no annual fee and higher per-transaction fees.  The best option will greatly depend on the type of business you operate, how often you think you will use your credit card processor, and the average amount of the sales you will be processing.