Funny thing, I've created many a custom site to process credit cards using various API solutions, but I dont even have a payment gateway or merchant account for my own use.

I definately prefer the flexibility that comes with using an API solution, but I'm not registered as a business, have no tax id, and no business banking account.

Most of my transaction either come in the form of recurring charges, like the kind associated with providing hosting services and server maintenance/setup, but I also would like the ability to charge 'one time' amounts when receiving payment for other services.

I am in the US.

Is it possible for me to get a merchant account as a 'sole proprieter' and would it be reasonable for me to assume that I could use a flexible API solution along with it?

Anyone have advice or 20/20 hindsight going through a similar situation?

Any recommendations?

Yes it is very posible for you to get your own merchant account as a sole proprietorship. And you could use any gateway that the MAP (merchant account provider) is compatible with. Most electronic payment gateways support an API. Some of them charge a bit extra, like Verisign's Payflow

Yep, as Corey mentioned - it is easy to get setup as a sole proprietor with a merchant account & gateway of your own.

In terms of gateways that I'd recommend, eProcessingNetwork or iTransact would do a good job for you in that you would have a virtual terminal for manual & one-time sales... but also have built-in recurring billing to bill your clients automatically.

You could even very easily setup an online ordering form for them to use to sign up for your service(s) or to make payments.

I would recommend Linkpoint as your gateway for the simple reason that they do not charge extra for recurring billing as most of the other gateways do. They also do not charge an extra transaction fee on top of what you are paying to your credit card processor. You just pay a flat monthly fee. You can get a bundled merchant account/payment gateway solution at www.merchantaccounts4less.com and I'm pretty sure they have special rates for WHT members.

-MM

Or you can use a merchant like authorize.net and setup your program to do the reocurring charges for you like my software does

thanks folks,

I'm probably just going to have to give in a become an official business or just go with something like 2CO for the short term, which I would hate to do. All of the places I've looked at so far either require a business account / TaxID or make it more difficult for me.

I have code to support various API's like Yourpay and Verisign etc and writing new code to validate/process cards is the least of my worries, thats the fun part.

If I could find a merchant account that would simply use my regular bank account and let me use the Gateway API of my choosing that would be great.

Essetially I would like it to be just like I had a business account/merchant account/gateway api but use my regular bank account instead. Everything else seems to throw another layer on top of someone elses Gateway API to skim a few bucks in the process, which is something I would probably like to provide as a service for my clients. So adding another layer on top of that is unwieldy to say the least.

Continued suggesstions/advise is highly appreciated

It sounds like the stumbling block is that you can't find a provider that will settle to your personal bank account?

You might consider adding your DBA name to your personal bank account: "John Smith DBA Smith Hosting". I think most processors would then allow you to settle to the personal account.