Without naming any names, there are some of my competitors on this list that is not the most ethical, forcing their customers into long term contracts with shoddy services. While another one on the list outsources their business to a different merchant account provider.

Either way, simply offering two sentences about a provider is really not enough. The credit card processing industry is extremely complex and confusing and its hard to base everything on a single price, rate, or product (which is fairly homogeneous anyway) because that’s just not how it works. There are so many different factors that makes up a merchant account.

Choosing a merchant account provider is one of the most important decision any business owner would make, but seems to be one of those things that aren’t thought up until the very last minute before their business opens. Its a little obscene at the lack of forethought business owners seem to put on choosing a merchant account provider when it has such a huge impact on their bottom line.

So I suggest anyone who is looking for a merchant account to really do your research.

Here are some things to think about. Merchant accounts providers tend to advertise a “low rate” which only makes up a tiny bit of the overall costs since there is an assortment of fees associated with a merchant account. Make sure you are not signing into a long term contract. The fees and discount rate for a merchant account is not like a mortgage. It is not fixed. If you’re in a contract with a rate that started off low, they can and WILL raise the rates and slap on hidden fees. If you leave, you’re stuck with a hefty cancellation fee. So its best that you don’t sign into a contract to begin with.

Make a list of companies you want to work with. Be sure to check them out in the BBB. Before calling, make sure you have a long list of questions to ask and weigh the pros and cons for each company. Good luck!