A complete guide to merchant accounts

Online shopping mainly depends on credit card transactions. For those who own and operate an online business must be aware of the fact that they cannot make enough profit if they are not providing their customers with the facility to pay for your merchandise through credit cards. And it is seen that online shopping has seen a boom in the last few decades with the vast majority of customers prefer to pay for their goods and services through credit cards. Hence if you want to make much money for your goods or services you need to think of opening an internet merchant account.

By opening an internet merchant account you will be able to provide an easy and suitable payment method for your customers. This also ensures you to provide your online business the ability to expand tremendously.

Nowadays there are numerous online merchant account providers offering merchants account services especially to those business owners who market their goods and services online. This makes opening an internet merchant account quite easy. You can open an internet merchant account with an online merchant account provider. After setting up your merchant account with an online account provider, the account provider will check to authorize credit card purchases and ensures that the funds are deposited into your business bank account correctly.

But while opening an online merchant account you need to make a thorough comparison between the different merchant account providers. Try to compare the services offered by different online merchant account providers, fees and all other major factors involved in merchant accounts. You may get the facility to open an online merchant account with a less fee and more services if you provide a good research.

Many online merchant account providers charge some amount as fees for opening and keeping a merchant account. But this is not the case will all internet merchant account providers, you will get the same facility without paying all such fees. The fees include application fee, service charges, transaction fee, statement fee, and annual fees. Annual fees are charged by most of the internet merchant account providers. Statement fee is a monthly charge which is charged to cover the account provider’s monthly statement processing. The fixed transaction fee, as the name states is a fixed amount which is usually calculated on each sale regardless of the cost of the merchandise bought. Some internet merchant account providers also charge a termination fee, which is charged if an account holder cancels his account before the contract is up.

Similarly there are several potential hefty costs which will be incurred which you open an internet merchant account. These costs can take all your profit away from you. So you must be very careful while opening an online merchant account. It is advisable to make a good research on different internet merchant account providers and know the fees they charge so that you don’t have to lose your profit for such unnecessary fees. You can check your current sales data to make a rough estimate the on the costs you will inquire for opening an Internet merchant account.

By opening an internet merchant account, your payment processing generally comes in the form of real time processing. This is much important in online business as the customer’s credit card is verified at the same time an order is placed. And if the credit cards are certified suitable, then the customer will be provided with an email notification that the order is accepted and the fund transfer is approved. Though all the processing is done instantly, there will be a few days delay for funds to be deposited into your business bank account.

Accepting credit cards. Close-up of blurred credit cards.

Before selecting any internet merchant account provider, make sure that the provider can accept several brands of credit cards such as Visa, Discover, American Express, and Mastercard, as well as offering alternatives like PayPal. Also see whether the internet merchant account provider has a clean record of good service and consistency. It is very important to know the details of the internet merchant account provider you selected, so that your business continues to thrive.