Credit cards are probably the number one source for revenue for most retails, online businesses especially. Profit margins definitely benefits from accepting credit cards as a form of payment for merchandises. Not only does credit cards increase sales for business owners, but also they are beneficial to the customers who use them as well, offering customers a record of their purchase so that they can easily track their finances. Whatever business you may own and no matter how you conduct your business–in person, online, or on the phone…securing the customers’ information when their credit cards are being processed is an upmost importance.

First thing to consider is which bank you would like to use for setting up your credit card service. You will have several options when choosing credit card merchant services. Banks will offer merchant services with a business account in one package, usually, but be informed though, that banks don’t actually do credit card processing themselves and that they are outsources to a third party. Be advised to look at different bank rates before deciding upon the one bank you would like to do business with.

Each credit card company handles merchant credit card accounts differently. For your safety and your customers, it is best advised to go with an established company because certain providers could be a risky investment for they are not regulated, such as registered credit brokers. Not only that, they are usually more expensive than a smaller merchant account providers.

It’s not only merchant account providers that are considered a high risk, certain businesses are considered high risk as well (depending on the credit history and potential fraud among clientele), and credit card companies will take into account how long your business have been in business, your chargeback rate to determine how much of a credit card risk your company may be. For example, online adult sites are considered more risky than a clothing boutique.

In addition to a credit check, vendors might also require you to provide credit references, investigate a background check on your business to make sure it is legitimate, making it a difficult process trying to qualify for a merchant account.

The next thing you will need to consider after being approved is the cost for credit card processing, such as purchases for all required credit card processing equipment. Your biggest up-front expense would be the credit card terminal, which is the machine that is used to swipe the credit cards–costing around $150-700. It will cost anywhere from $500 to $1000 or even more if you wish you have a wireless terminal. If interested in leasing the machine, it will run you about $20 per month.

When you sign up for a merchant account, in some instances, you may even get a terminal as part of a package, maybe ending up to save you a considerable amount of money. Your provider charges for every transaction as well as application and activation fees, factor in discount fees the percentage of money etc.

Lydia Kim is a writer and fashion enthusiast based in San Diego, California. She writes extensively for <Resource Nation, an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.