Lease a terminal. Brand new terminals can cost anywhere from $150 to $1,000. Instead of purchasing a credit card terminal, why not lease and instantly cut your costs to a half or even more?

Avoid high application fees. Avoid merchant account providers that ask for very high upfront fees. Also, make sure that the initial fee is refundable just in case your application is declined.

The discount rate. The discount rate is the charge per credit card transaction. If you make a great number of credit card transactions each month, you should be given a much lower interest rate. Don't hesitate to request for a lower rate especially if you know you deserve it.

Monthly costs. Don't forget to check the monthly costs as well. Most companies would require a client to pay a penalty fee if it fails to reach the minimum quota of transactions in a month. See to it that the penalty fee is reasonable.

Other fees. Aside from the basic fees, miscellaneous fees can add up to your expenses. Examples of these additional costs are online processing fees, annual fees, programming fees, customer support fees, etc. See to it that the exact costs are clearly stated in your contract before you sign up for the account.

Negotiate with your provider. Don't be afraid to negotiate with your merchant account provider. Do it before you sign up any agreement. If your company receives a large bulk of credit card transactions, a merchant account provider would most likely give in to have you as a client. If you don't think you're in the position to ask for a lower rate, you can request for a lower set-up fee or monthly fee instead.

Early termination fees. Stay away from merchant account service providers that insist long-term contracts. Unless you've tried the company before and you're happy with its service, it's better to stick with short term contracts. This way, you can easily switch to another company if you're unhappy with the service.