BBBMerchant Account Providers - Accept Credit Cards Online

How To Accept Credit Card Payments Online
Setting up an online business is one thing: making it pay is another. If you are establishing an online business that involves selling, you will expect to deal with an international clientele. In order to avoid currency problems, mail delays, and the risk of losing customers who want to make an immediate purchase, it is essential to be able to accept credit card payments.

There are two ways to accept credit card payments on your site. You can either establish a merchant account, or you can use a third party merchant provider. Whichever you choose, you should first make sure you understand how they operate. While it is vital for your business to be able to accept credit card online payments, it is also essential for you to understand the various costs and conditions that you will encounter, both when you establish your account and on an ongoing basis.

A merchant account allows your business to accept credit card payments. This type of account is established through a merchant bank or a merchant service provider. Some require an application fee, as well as an annual fee and up front fees for other services such as setup and installation, before you can begin to accept credit card payments. Others do not apply such charges. As well as being aware of any initial costs, you should also investigate the complexity of fees that will apply when you use a merchant account to accept credit card payments online. The most common fee is the discount rate, or the percentage charged on each transaction, but even this fee varies according to whether you swipe cards, key in their details, or carry out internet transactions. There are many other merchant account fees that can apply in various cases. If you understand how they operate, you will be able to select the provider who is best for you, giving you a financial advantage when your business begins to accept credit card payments.

If you choose not to use a merchant account, or if you are unable to obtain one for reasons that could include being a new or high risk business or having no credit history, a third party merchant provider will accept credit card payments on your behalf. While the transaction fee is higher than it would be for a merchant account, there are benefits, such as lower initial costs and less work. Third party merchants that accept credit card payments for you also do the processing in return for a variety of percentages and fees, which you should compare before making a decision. With no processing work, the third party method can be particularly convenient when your business is new, offering you a convenient way to accept credit card payments, while allowing you more time to get your business established.


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