1. Open an account for myself and 2. Research options for my new ecommerce information site Take-Payments-Online.com.

After some research, I thought I'd found an attractive Merchant Account offered through a reputable reseller. As it turns out, I learned hard way that I was wrong.

Fortunately, my experience can help you avoid same trap. Based on my own experience, I developed a list of questions to ask a potential merchant account provider. Understanding answers to these questions before signing an application or agreement will help make for a solid partnership between you and your account provider.

But first, story:

My Internet Merchant Account Experience

I found what looked to be a competitive Merchant Account offered through a program at a popular reseller. Fees were summarized on reseller's site and applying was simple. I paid an $89 set-up fee, which took me to an online application I was required to submit to get process going.

That's when things got interesting. Submitting an application meant agreeing to a previously undisclosed 45 page merchant agreement. An unmentioned termination fee was buried on page 11.

If I ever cancelled account, I'd be hit with a $295 termination fee. I knew from my research that large termination fee was not competitive with other merchant accounts and other aspects of account were not attractive enough to compensate.

Suddenly, this merchant account was not such a good deal.

More critically, however, termination fee was not disclosed before I was required to pay for set-up. I immediately asked for a refund.

Non-Refundable

Then things got even more interesting. I was told $89 fee was non-refundable. I'd seen a footnote that fee was non-refundable, but interpreted it to mean only if they actually did some work and processed an application. I had not completed an application and did not intend to after learning of extra $295.

Using email support system so I would have documented proof if I needed it, I insisted on a refund. Still no go.

When I explained there had been no set-up to justify a 'set- up' fee, they responded that fee was really an 'application' fee - non-refundable, as explained in footnote on order page.

Basically, they were telling me I'd paid $89 for a link to an online application, which I had not and did not intend to submit.

Finally, A Refund

I explained I would not take no for an answer. If we couldn't work this out I'd report them to Better Business Bureau for undisclosed fees, file a complaint with my credit card company, and copy company president on each. My complaint was sent to next level.

Finally, after an additional three day wait, refund was approved.

Avoid An Internet Merchant Account Trap

The term "spam" of course, refers to unwanted commercial e-mail that clogs millions of computer mailboxes every day. The Internet culture's current mindset toward spam is so near to reaching critical mass, it's akin to that of a rabid and out of control lynch mob in old Tombstone - to put it succinctly, "shucks, let's hang somebody."

While 30 or so states in US now have anti-spam laws on books, most of them are difficult to enforce against real spammers (the ones who send multi-millions of emails at a whack, hawking this week's special snake oil.) Those people often are located outside US borders, and are about as easy to track down as a ghost.

It's my prognostication that few if any real spammers will be lynched. The people who are most likely to be harmed are legitimate businesses who participate openly in electronic marketing, conducting their affairs above board with real addresses and real phone numbers.

Small emarketers who derive part or all of their income from email marketing, and have worked to develop their own opt-in emailing list, appear to be ones who are most vulnerable to aggressive anti-spam laws.

The fact is this: Sooner or later, some list member will "forget" that s/he opted-in, and will inevitably scream SPAM at top of their lungs. With prospect for major remuneration under California law, there undoubtedly will be those who suddenly contract a case of chronic "opt-in amnesia." Managing most valid opt-in emailing list in Universe is about to become even more taxing.

What To Do?

1. - Develop an iron-clad opt-in agreement that new subscriber must read and electronically agree to (via a radio button, checkbox, etc.) before s/he is presented with your opt-in form.