Choosing the right merchant account provider is one of the most critical business decisions you will make. It is obvious that merchant accounts are readily available from numerous providers. Just because a company is offering merchant account services doesn't mean that they are the right company to go with.

First, consider only real merchant account providers and stay away from banks. In today's high-tech Internet world, banks have become antiquated and just are not up to date on the latest technology in merchant accounts, especially in things like website ecommerce and wireless processing. In addition, banks that offer merchant accounts actually outsource the entire operation to a merchant account provider. As a result, you are better of going directly to a merchant account provider and ignoring the bank altogether.

So how do you choose the right merchant account provider? The right choice for you will depend on several factors:

- Are you selling online or offline?
Online and mail-order merchants can expect to pay a premium because credit card fraud is more common on the Web than in a retail store.

- How high is your sales volume?
The initial costs of opening your own merchant account is usually higher than when you use a third party merchant services. If you only make an occasional credit card sale, third party merchant services are a simple and inexpensive option.

- What's the nature of your products?
If they are large and expensive, perhaps you ought to choose a merchant account provider that offers a higher flat-rate transaction fee and minimizes the discount rate. The opposite is true if you rely on small, high-volume sales.

- Features
For e-commerce, the provider should have a good interface for your web site. If you are using e-commerce software such as osCommerce, make sure your provider is supported. If you, or your developer, are designing the system, make sure the company has good support for interfacing with their payment system. Some providers will offer an API (Application Program Interface) so that you have sample code to connect to the payment system. This is VERY helpful if you are designing your own system.

Make sure to figure out what kind of fees and charges your provider collect and what they will cost you. It is important to understand there are monthly fees as well as set-up fees. When looking for a provider, try to balance the discount rate and per-transaction fee with your needs.

So you have done your research, now what do you do? Choose a provider that not only meets all your technical needs but also one that has a proven track record over many years, with thousands of satisfied clients, provides world class customer service and low fees, and offers a 100% money back guarantee so you can try them out. Never settle for second best. Your business is depending on it.