In today's business environment it is very difficult to survive if you do not take credit cards for payment. It doesn't matter if you are selling a product or service. Credit cards are ubiquitous and used by most everyone. Even those who shun credit cards will use the credit card processing system for their bank debit cards. There is really no escaping the reality: you need to accept credit cards in your business or your competition will eat your lunch. So how do you get started? This article will address the basics of opening a credit card merchant account, the bevy of merchants offering credit card processing services and the associated costs.

BASICS
A credit card processor provides the service of accepting credit cards either through a swipe machine, over the phone or through a Virtual Terminal. Credit card processors charge a fee, known as an Interchange Fee, or Discount Rate. This fee ranges from 1 to 4 percent, depending on charging volume and if you have the physical card present or are taking the credit card information over the phone or through the computer. There are three ways you can take credit cards:
#1  Swipe Machine or
#2  Calling it into the Credit Card Processor or
#3  Utilizing Proprietary Software of the Processor, known as a Virtual Terminal

Very often, retail businesses with high charge volume will use all three methods. Think of the virtual terminal as a web site you access that allows you to enter the credit card number and complete the transaction. Virtual Terminals are beginning to replace credit card swipe machines.

GETTING STARTED
The best place to start is to reach out to your banker. Most commercial banks have a relationship with credit card processors. Your bank's credit card processor business partner will set you up with a Merchant ID from Visa and Mastercard. If you want to accept American Express you will need to reach out to Amex directly (800-528-4800) in order to obtain a merchant ID prior to reaching out to your bank. Alternatively, you can reach out to American Express instead of your banker and have American Express act as your primary credit card processor. American Express will process most of the major credit card, in addition to its own.

MERCHANTS
The following is a short list of the main credit card processors:
#1   Your Bank's credit card processor business partner
 #2  American Express
#3   PayPal
#4   Google Checkout
#5   Intuit

COSTS
For business accounts, PayPal charges a monthly fee of $30 as well as a transaction fee that ranges from 2.4 to 3.1 percent. Google Checkout has no monthly fee and transaction fees range from 1.9 to 2.9 percent. one advantage Google Checkout has over other credit card processors is its checkout guarantee. This guarantee protects 98 percent of your sales orders, on average, meaning you will get paid even if the transaction results in a chargeback.  Intuit charges $13 per month plus a transaction fee of 1.9 to 2.9 percent. When American Express processes your credit sales it will credit your bank account with a net sales amount. This net sales amount is your gross sales reduced by their transaction fee. For most other credit card processors your bank account will be credited with the gross sales amount and a separate charge will be automatically deducted from your bank account.

For more information on credit card processors go to www.merchantmaverick.com. This site provides information on the various online credit card processors, which includes reviews and a comparison tool.