Online Home Business

In order to accept credit cards, you need a home based business merchant account for your Online Home Business. Retail and service businesses can open merchant accounts at any banks.

However, banks usually don’t offer a home based business merchant account to home based businesses, mail order businesses and especially not to online home based businesses. Banks consider a home based business merchant account high risk. However, some banks will allow a retail business home based business retail account. If your bank will not allow you to open a home based business merchant account, you have to open one through a third party merchant account provider.

How to get a home based business merchant account?

Independent Service Organizations or ISOs offer home based business merchant accounts. To open a home based business merchant account through an independent service organization, you have to contact their sales representative. You have to pay an application fee for the home based business merchant account. Free home based business merchant accounts are rare but you may be able to find a cheap home based business merchant account. You have to ask around and compare prices of the home based business merchant accounts offered by each ISO.

The application fee for a home based business merchant account is usually nonrefundable. If your application is approved, you will usually need to purchase a software or some device to process credit card orders and accept credit cards for your Online Business.

Finding a cheap home based business merchant account

For a start up Online Home Business, it is best to find a cheap home based business merchant account. Before you pay an application fee for a home based business merchant account (if there is a fee), you should obtain a list of all the fees that you will be charged and make sure there is no hidden fee on top of that. Below are some questions to ask when finding and opening a cheap home based business merchant account are:

• how much is the application fee?
• how much is the discount rate? (percentage of sales you pay on each transaction)
• is there a per transaction fee? (such as 25 cents per transaction)
• is there a monthly minimums?
• is there a charge for monthly statements?
• what software will I use and how much will it cost to process a credit card order?

Related posts

• Small Business Home Office