Internet Merchant Account


Get Internet Merchant Account in Two Days


     Your business may be small-but the Internet lets you think big. If you have a web-based business and you need to accept credit cards payments, your choices will be limitless. Accepting credit card payments through your site requires two main components:

  • Online payment gateway:It provides Internet connectivity between buyers, sellers, and the financial networks that move money between them. It allows you to securely and easily authorize, process, and manage online payments. This service is usually operated by a third-party provider.
  • Internet merchant account:It is an account with a financial institution to enable you to begin accepting credit card payments over the Internet. It links your client's credit card account with your own business account. 

An Internet Merchant Account remains the least understood and most delicate component of building an online business. At the same time, making a poor decision in selecting a merchant account provider can jeopardize your business. Often, people will focus on one account issue: discount rate. The discount rate is the percentage taken from each transaction. A reasonable rate is very important but many merchants never look beyond the discount rate. You should shop around and make sure you do rate comparison. Here's what you have to enquire about:
  • Application Fees: Some institutions will charge you one time fee for applying for an account, regardless of you got accepted or not. You may find many providers waive these fees.
  • Setup Fee: Once your application has been approved, there may be one time fee for establishing the merchant account.
  • Discount Rate: It is a percentage taken from each credit card transaction. It is usually between 1 and 4 percent.
  • Transaction Fees: It is a fixed portion of each sale performed online. If you are selling a small number of high-margin products, the transaction fee will be irrelevant. On the other hand, if you are selling a low-margin products, a high transaction fee has the potential to take a large chunk of your profit. The transaction fee is usually between $0.10 and $0.35.
  • Chargeback Fees: Chargebacks stem from returned or repudiated purchases. Chargeback rates are implemented to protect the merchant account provider. They will charge you a fee for every chargeback you incur. If your business receives a high amount of chargebacks, then chargeback fees can hit you hard.

When you are evaluating a prospective Internet merchant account provider, you need to evaluate the full rate according to your business model. Before you make a decision, understand all of the cost components and plan ahead to save your time and money. Remember, rates and fees are part of the big picture. You have to evaluate the other part like customer support and online experience.

 

 

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