For the online business person who is getting ready to make the move and add credit card processing, the obvious first question is where to find a provider.

If you sit down at your computer and enter “credit card processing” or “accept payments online” into a search engine you’re going to get hundreds of sites to choose from. And this is where a rookie mistake is often made. An e-merchant sees all those providers and wonders if the smart play would be to use their local bank.

While that bank has been a great partner for things like their business checking account, banks as a rule are not the best place to get merchant services. At least not a place to look where the deal will be competitive.

Part of this stems from all the services that banks offer – savings and checking accounts, certificates of deposit, mortgage and home equity loans, insurance and financial planning. Even if they do these things well, and most banks do, their resources are spread too thin for something as important as merchant services.

For that reason banks usually can’t compete when it comes to the fees associated with credit card processing services, and many lack the flexibility needed. Indeed, some banks may not be able to handle the merchant services needs of smaller business like those that operate over the Internet.

It is smarter business to place your credit card processing with a company that specializes in that discipline. Because it is all they do they can offer better rates and are better able to put together cost-effective package of services so your e-store can accept credit cards.

And what about the bank? Well, when credit card acceptance boosts your profits you’re going to need somewhere to deposit all that extra cash.