|
A Merchant Account is a commercial bank account established by a merchant to receive payment via credit cards. Three parts are required to accept credit cards. Besides a merchant account, you need a local bank checking account to deposit funds and a processing solution, such a terminal or web-based store front to take credit card payments. Online merchant account, or ecommerce merchant account, is a merchant account that can take credit orders on the Web.
Cost of Merchant Account
An online merchant account will boost your online sales, but merchant account incurs various types of cost. A merchant account usually requires a one-time setup fee between $50 - $100. Some merchant account providers waive the setup fee in promotion period or in conjunction with other services. Other costs include gateway fee, statement fee, annual fee, transaction fees and discount rate fees.
Accept Credit Card without Merchant Account
When you first start an online business and have limited resources, the alternative would be to use the services of a credit card processor. You can enjoy the benefits of processing credit card transactions online without the requirements of a merchant account and high costs involved. Paypal, WorldPay, PaySystems and Clickbank are some of popular credit processing services. Popular shopping carts or online storefronts, such as eBay Store, Yahoo! Store and Microsoft bCentral, offer built-in credit card processing capability.
Domestic Merchant Account Options
A domestic merchant account may be the best option for your company. ThatÂ’s because when you have an account managed by a company located in your country of residence, both you and the lender are familiar with laws and business codes that can impact the way your company operates. An offshore entity, in contrast, may be less familiar with and less observant of the rules that govern spending and payment transactions in your country.
Your domestic merchant account may be beneficial in other ways, as well. When selecting a lender, you can choose one that you know something about. Perhaps you h ..
International Merchant Account
International merchant accounts ( http://www.4th-media.net/online_payment/international_merchant_account.php ) , or Offshore Merchant Accounts, are merchant accounts that allow the merchants to accept payments from around the world-- regardless of where your business or customers are located. Comparing to an online merchant account, two major services that come with an International merchant account are Multiple-Currency Support and International Fraud Protection.
Wireless/Mobile Merchant Account
Mobile merchants used to face unique issues when accepting credit card payments. With the advancement of high-speed wireless networks and mobile technology, mobile businesses are no longer limited in their payment options to just cash or checks.
Many merchant account ( http://www.4th-media.net/online_payment/mobile_merchant_account.php ) service providers waive application fee and setup fees to attract more businesses. However, the use of wireless service provider does incur the expense of the terminal hardware, activation fee, monthly service fee, and transaction cost.
Internet Merchant Account BenefitsAnyone who is in business these days is probably considering the benefits of an Internet merchant account. After all, applying for a merchant account is fast, easy, and usually inexpensive, although some underwriters charge for the privilege of submitting an online application. A merchant account offers the means of accepting credit card payments from your customers, and this is a benefit that many entrepreneurs are finding to be increasingly valuable. Research shows that more and more consumers prefer to use a credit card when they go shopping, whether at the mall or online, so it makes sense ..
Copyright @2005, Bruce Zhang
About the author:
Bruce Zhang has over 10 years experience in developing ecommerce and e-business application such as literature fulfillment ( http://www.4th-media.net/order_fulfillment/literature_fulfillment.php) and supply chain management ( http://www.sysoptima.com/scm/) applications.
Bruce ZhangOnline Merchant Account - Costs and Alternatives
|
