When
it comes to e-commerce, businesses large and small require a method
that allows them to collect and process credit card payments.
If this sounds like your business, then you need a payment gateway
which is generally provided by a merchant account. Finding a
merchant account provider can be somewhat of a challenge yet anything
can be overcome when doing a little research.
How
Much Will it Cost?
For
the most part, merchant account providers will charge you a fixed
rate per month along with a certain percentage for each sale.
Keep in mind that there may be other fees as well. When dealing
with a reputable provider, these fees will be for maintaining your
shopping cart, verifying customers, processing monthly statement,
etc. Having a merchant account is vital in the realm of
e-commerce as most consumers today prefer to shop online with their
credit cards. If you can’t accept this form of payment, you
may as well not even open up a storefront.
How
Can I Get One?
When
searching for a merchant account, you will find that most providers
are pretty reasonably priced. The catch is that you must
qualify. Some of the qualifications for a merchant account
include background checks, credit checks and proof that you are
actually running a legitimate business. Additionally, some will
require that you commit to their service for a certain amount of time
and charge cancellation fees for breaching the contract. Others
do not have stipulations and will allow you to part ways at any given
time without taxing on fees. This is why it is very important
to look into a particular merchant account provider before deciding
on a service. As with most web-related processes, it is
best to find a company that is in good standings and has been in the
industry for a while. This gives you better assurance that the
provider will be around and won’t cause you to miss out on crucial
sales.
What
Should I Look For?
When
comparing merchant account providers, don’t hesitate to grill them
with hard questions. One thing you definitely want to known is
the estimated time frame for depositing funds into your account
following a sale. Retail sales generally do not take long to
process, therefore, there is no need to wait an ungodly amount of
time for your money. You should look over the merchant account
contract with a fine-tooth comb because the sooner you get paid, the
better. Always keep your eyes peeled for all the standard
charges such as monthly fees, setup fees and cancellation fees if
they apply. You also want to look for any hidden fees that
might deduct from your bottom line. After all the fees have
been tallied, you should then calculate the overall cost of service
to find out if this solution actually works for your business.
A
merchant account is a vital tool in the world of e-commerce and when
signing up with the right service, you will find that it can save you
noteworthy fees in comparison to a service like PayPal.
The key is finding a reliable provider that is going to be around and
won’t try to nickel and dime you to death.
