Merchant Account Comparison - A Simple Guide To Compare Merchant Card Processing Accounts
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Accepting credit cards online is vital to any business wanting to successfully sell goods and services online. At the dawn of online business it was accepted that using credit cards for Internet purchases was a bad idea, because it was trying to apply a dirt-world solution to the digital world. New companies trialled alternative payment methods for example “beenz”, but they didn’t achieve critical mass. The truth is, roughly a decade on from the commercial birth of the Internet, still using credit card to make online purchases and accepting credit cards when selling products online is still as important as ever.
Basically, there are two different ways to accept credit cards online. Let’s compare merchant accounts. A business can either sign up for a merchant account, which allows them to process credit cards in their own business name, or they can go with a third party solution, who actually processed the credit card orders on behalf of the business selling the products. Getting a merchant account has higher upfront costs, but has smaller per sale fees. Using the services of a third party processor costs less initially, but has more expensive per sale fees.
Deciding whether or not to get a full merchant account or use a third party solution is just a question of doing the math. Let’s look at two different business types and compare merchant account benefits…
Usually, merchants who are actively trading offline and want to start selling on the Internet will be more suited to getting a credit card processing account. Most likely, It’s most likely that they will already have an offline credit card processing account and will expand the remit of that account to add the ability to do “MOTO”, which is “Mail Order Telephone Order” processing and only means that the credit card holder isn’t there at the time of purchase.
For small businesses starting out online selling new software or a new ebook, it is strongly suggested that they begin by testing their sales using a third-party service provider. The advantage is that there’s very little initial cost so they can test their market easily and cheaply. If sales boom, they can eventually look to reducing the per-item costs by applying for their own merchant card processing account. If sales are poor, they can quickly exit the market without having expended much capital to get a merchant card processing account.
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September 30th, 2008 at 10:31 pm
I have a ProPay account, but used it only twice. Is there a way of getting a cart on your webpage/blog? Do you have any suggestions on how to do that?