Credit card merchant accounts
If you are considering setting up an eCommerce business (or expanding an existing business into eCommerce), one important decision you will soon have to make concerns how you will be paid for your products or services. In nearly every case, merchants will need to be able to accept credit cards through their websites.If you don't accept credit cards, your business will probably suffer greatly. First, if visitors to your website are interested in what you have to offer when you've shown it to them, the ability to order immediately can mean the difference between a sale for you and just an idea that fades to the back of your visitor's mind if they have to mail a check or purchase a money order. Secondly, if your market includes international customers, credit cards may be the only way for them to pay.
Generally speaking, there are two methods of accepting credit cards online. You can either establish your own credit card merchant account, or go through a third party merchant. There are advantages and disadvantages to each.
A third party merchant is usually less expensive to set up initially (and in many cases is free), but you will pay a higher transaction fee and greater percentage of each sale to the third party. An example of such an online third party is PayPal. This can be a viable option if you are not sure if your business will become established and you just want to try out a few sales.
If you plan to continue to offer services or products, opening your own merchant account will usually result in lower fees on credit card processing. Additionally, having your own merchant account makes your business seem more professional. There are some credit card merchant services that offer services without application fees, and sometimes even free setup. This can represent the best of both worlds.
