The options of choosing a credit card processing merchant can be endless so here is a bit of education on the various types to choose from.
International merchant credit card processing companies: Commonly known as an offshore merchant account, choosing international credit processors can be risky. Most businesses that opt to have credit card processing done through an international merchant account provider usually have little or poor credit history, an odd location or another reason for not allowing access to companies located in the United States. Working with an international credit card services merchant account company can be a risky investment because they are not regulated in the same manner as those in the United States. Make sure you conduct much research if this is an option for your business.
Banks: As you approach a bank to do general business services, ask if credit card processing services are included when opening your account. Browse various banks to review rate options and make an informed decision about who will be handling your credit card processing needs. Many banks do not offer this type of processing themselves and outsource to third parties so make sure to keep this in mind when shopping around. Sometimes, banks will offer merchant account services in conjunction with a business account package.
Registered credit card brokers: Also known as independent sales organizations, registered credit card brokers represent many third party processors at any given time. They function much like a bank as they do not actually process the transactions themselves, but set up accounts with those that do. This is a more expensive option and again, many of these companies are not regulated and become a bit of a riskier investment for your point of sale systems needs.
Established credit card companies: Depending on the way your company accepts credit cards, an established company is probably the best choice if you are looking for credit card processing. For example, Visa will require you to have a recognized account through another intermediary organization before offering you credit card processing for your business. Conversely, American Express will work with you directly to set up an account.
