Finding the right merchant account

[KatieUS]

I need advice on finding the right merchant account for my business. I have recently started a home based mail order business which will be running on and off line. The cost of my product will be around $495.00 and the website is already set up and waiting for a merchant account. I cant afford to purchase equipment and I am not exactly sure what extras I would be charged. I thought of using PayPal, but then found out they didnt accept (.net) websites, and I was a bit suspicious of how it all seemed so easy.
I am new to the e-commerce scene and after viewing a lot of 'merchant account' websites I am overwhelmed by 'great deals', 'lowest prices' and 'the best in the business'. With so may different plans flying around I dont know which one is right for me!~#
One website advertises 'NO start up fee's or purchase of equipment, and then the next is charging $69.00 per month with option to purchase or lease software/equipment and other fee's. I am sure all I need is something basic to begin with, with no bells or whistles attached! :hehe:
Can anyone point me in the right direction?

Katie:)

[Rich]

Katie:

It is difficult to make any specific recommendations without more detailed information about your needs and your business. But, in general, here are a few pointers:

First, regarding PayPal, the fact that your domain is 'mydomain.net' would not prevent you from setting up a PayPal account. I believe the confusion might be that perhaps their scripts are not supported on the Microsoft .Net platform?

However note that PayPal, like other "third-party" solutions does not involve a true banking relationship and could (and has) placed some merchan'ts funds in jeapardy.

You have a relatively high-dollar ticket amount ($495). Unless your margin is extremely high (>70%), I would recommend seeking a merchant account with an acquiring bank rather than a third-party solution to help minimize costs.

In the merchant account arena there are lots of scams out there, so you will want to do your homework. Look for the following:

-- You should be able to get setup for $100-$500.

-- Monthly fees should be somewhere between $25-$75 per month plus transaction fees..

You can search the ecommerce forum here for many recommendations about merchant accounts. Here are a few that come highly recommended:

www.costco.com (bank merchant account)
www. paypal.com (3rd party account)
www.worldpay.com (3rd party account)
www.kagi.com (3rd party account)

In addition to these, I would consider:

www.humboldtbank.com (bank merchant account)
www.echoinc.com (bank merchant account - very low cost)
www.wellsfargo.com (bank merchant account)

[BigByte]

I just got mine with www.merchantexpress.com - very good service, good rates.

Chris