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Did
you know that one of the best ways to increase sales for any
online or offline business is to offer your customers the
convenience of paying by credit card? As a merchant, you
have several options available when it comes to becoming
part of the credit card acceptance and processing chain.
Here's a quick guide to get you thinking.
Merchant Accounts
If you want your online business to be capable of accepting
credit card payments, you must have some type of merchant
account. A merchant account allows you to take credit cards
as forms of payment in a safe and secure manner.
You apply for a merchant account by filling out an
application and signing a fee agreement. Unfortunately,
navigating the merchant account maze can be difficult if you
do not have financial experience. There are many different
companies out there, and they all have a deal to offer. But
before you sign up for anything, read the fine print.
The three main fees you need to look for are the set-up
fees, the percentage you will pay for each transaction, and
the monthly fees. All of these fees need to be taken into
consideration. One company may advertise low set up fees,
but they may take a higher percentage of the sale or the
monthly fees may be considerably higher.
There are two types of merchant accounts, your own personal
merchant account or a third party merchant account. A bank
will open your own account and although they may have higher
initial opening costs, these accounts generally have a lower
transaction fee (what you pay them for each transaction).
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Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
Deciding which of these two
types will work best for you is a personal decision, but if
your business is established and thriving, the bank-based
merchant account will probably work best.
Third Party Merchant Account Providers
There are a large number of providers out there, all
offering what is sure to be the best deal ever. Let's
evaluate some of the top providers and see what it is they
really offer.
2CheckOut (2CO) offers instant acceptance for new merchants
and has a $49 setup fee, no monthly fees, and an average
transaction fee. The account offers a built-in shopping cart
and accepts one-time or recurring payments. They accept both
physical and digital goods merchants.
ClickBank offers a one-time setup fee along with a
transaction fee of $1.00 plus 7.5% of the sale price. There
is no monthly fee. They will also handle tracking and paying
your affiliates automatically. They only accept merchants
selling digital goods.
PayPal has no setup fee and a sliding transaction fee, all
of them very low, based upon sales volume. They accept both
physical and digital goods merchants and have various
methods for you to tightly integrate their interface with
your site. Subscriptions and one-time payments can be
processed.
This is just a general overview of some of your payment
options. Before you decide, do some in depth research and
find the account that will work best with your company's
needs.♦
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