Decide on Banking and Merchant Services

DecideDecide on Banking and Merchant Services

You will need a business bank account and possibly a merchant account and Paypal account.

Paypal – Research this service and see if it will help your business.  Here is Paypal’s comparison of its business services.

Merchant Services – If you want to accept credit card payments from customers at your business location or online, you need a merchant to process the credit card transactions. Paypal offers merchant services and, more than likely, so will your bank.  There are also several independent merchant services available.  Be sure to research this thoroughly because there are often hidden fees and hidden conditions such as the merchant holding back 10% of all your sales for an extended period of time.

Consider these points when choosing a bank:

  • Bank service charges and minimum balance requirements.
  • Location of branches.
  • If you know someone who works at the bank.
  • If you already have a satisfactory banking relationship with the bank.
  • If you are also obtaining a loan, most banks who loan you money want your business checking as well.
  • Several consumer advocates suggest credit unions, so be sure to consider.
  • User friendliness of the online banking interface.
  • Whether or not the bank is locally owned.
  • Does the bank have special knowledge or lending experience to businesses in your industry?