"The payment processing arena is like an onion -- you just keep peeling back the layers and find that there is more," says Colleene Isaacs, vice president of business services with Segue Systems, a leading clearance service providers.

To help peel the onion with the least amount of tears, businesses should consider the following questions when looking for a transaction clearing system to integrate into their e-commerce plans:

1.  How will the clearing service integrate into your online storefront?  Some sites may want to integrate it themselves with a simple cgi or perl script which links the order form and clearing service.  Some shopping cart programs may already have this integration built in, so be sure to check with the software manufacturer.

2. What is included in the setup fee and standard service?  In addition to just transferring the transaction information between your site and your bank, some clearing services may offer additional services, such as batch settlement, a password protected transaction site where you can review all transactions and import the information into a spreadsheet and a "virtual terminal," where you can issue credits and perform other administrative functions, as on a regular swipe terminal.

3. How much is this going to cost, and what is the fee structure?  "People expect everything to be free, and that's just unrealistic.  There's a cost to doing business, even on the Internet, " says Isaacs.  In addition to setup costs, some companies charge a flat fee for the service, plus an additional per-transaction fee.  Segue just charges a flat fee for the number of transactions, based on the volumes: $49 for up to250 transactions per month, $79 for 251 - 500 transactions, and up.

4. Are you able to upgrade your service as your online business grows?  Are you locked into a contract or service type that may penalize you for exceeding a transaction limit, or does the company make it easy for you to scale the service to fit your business?

5. What is the performance and reliability of the service?  Performance is determined by the time it takes to complete transactions.  Reliability involves the rate of transactions that don't go through.  See what the service claims for performance and reliability, ask them for the names of some current clients, and find out if they live up to their claims.

6. What kind of support will you be getting?  Does the service provide you with customer support themselves, or do they operate through resellers?  With some services, banks essentially operate as a reseller.  If any problems occur, the bank acts as the first line of support, not the clearing service.  Make sure that the service you choose has a relationship with you and can help resolve problems directly.