Depends how you define losing money. If I just paid say a $70 fee to have $3,000 or even a $200 fee to have $10,000 dumped in my bank account (minus fees) within 3 business days without a fuss or worry or waiting at the post office and getting in line at the bank... was that worth it? Have I lost money? No, if I'm pricing well, then giving up even 5% of the transaction was worth it, well to me anyway!
What else makes accepting credit cards a good idea?
I find that it really helps with international and in some cases out-of-state relationships. People are concerned about sending checks since those can be cashed and you may never be heard from again! But with credit cards, people have recourse and can fight false charges. So while you may not plan to charge anyone falsely, it is convenient for people. As for international business, if I take their Visa, MasterCard, or American Express (I don't take any other cards at this time), then they don't have to worry about fees associated with getting a cheque cut in US funds or bank wiring. Yes, they don't get the best exchange rate on the planet for the transaction, but many people are willing to be OK with that so that they don't have to put in a lot of effort to dump money in my account. And of course, many people use their credit cards to accumulate miles or reward points, so there is incentive for them that has nothing to do with you and your products or services.
How do I find the right merchant account for me?
Search the web for companies who may specialise in getting accounts with low percentage rates for your type of business. If you are like me and are in web development, internet, or mail order (some business where chances are you will NOT be holding people's cards in your hands for processing), you will find reps who can help you. Mine told me I was a piece of cake because most of his clients were internet porn sites! The fact that I had nothing to do with porn made me an easy case. :) I got an account with what I felt were rather fair rates... until American Express "reset" me once they saw what I really do. You can also go to your neighbourhood bank who has your business and/or personal accounts. Most if not all banks have this service, and may be happy to help you because you're already a customer and you are loved.
