Establishing a Merchant Account for Your Web Business
From: inc.com
Many online businesses have had difficulty establishing a "merchant account" - a special type of bank account that holds the proceeds from credit card transactions.Without a merchant account, Web businesses can't accept credit cards and may miss out on more than 60% of their sales opportunities. Here are three of the first steps in establishing a merchant account for your Web business
Determine Your Needs. Before shopping for a "merchant account provider" (MAP), take the time to determine which merchant account features and services you'll need. Two important examples are:
Real-time processing. Some E-commerce systems offer automated transaction processing while the customer waits. Others offer manual processing, which collects payment information for later processing by hand. Real-time processing is more expensive and typically only required in high volume systems or for products distributed electronically, such as documents or software downloads.
Technical compatibilities. Many MAPs offer an entire E-commerce system as part of their service. This system may be incompatible with your current or planned hosting software or other E-commerce applications. Check with each MAP to ensure its software is compatible with your E-commerce system.
Research Merchant Account Providers Don't rush into any MAP service contract without gathering at least five price quotes from prospective MAPs. Also, keep in mind that rates and fees are often negotiable: don't hesitate to push MAPs into a bidding war. Merchant accounts should not be an obstacle to setting up shop on the Internet. With a little research and planning, acquiring a merchant account can be painless and inexpensive. It can also shield you from less-reputable providers seeking to profit from novice Web merchants.
Many online businesses have had difficulty establishing a "merchant account" - a special type of bank account that holds the proceeds from credit card transactions.Without a merchant account, Web businesses can't accept credit cards and may miss out on more than 60% of their sales opportunities. Here are three of the first steps in establishing a merchant account for your Web business
Determine Your Needs. Before shopping for a "merchant account provider" (MAP), take the time to determine which merchant account features and services you'll need. Two important examples are:
Real-time processing. Some E-commerce systems offer automated transaction processing while the customer waits. Others offer manual processing, which collects payment information for later processing by hand. Real-time processing is more expensive and typically only required in high volume systems or for products distributed electronically, such as documents or software downloads.
Technical compatibilities. Many MAPs offer an entire E-commerce system as part of their service. This system may be incompatible with your current or planned hosting software or other E-commerce applications. Check with each MAP to ensure its software is compatible with your E-commerce system.
Research Merchant Account Providers Don't rush into any MAP service contract without gathering at least five price quotes from prospective MAPs. Also, keep in mind that rates and fees are often negotiable: don't hesitate to push MAPs into a bidding war. Merchant accounts should not be an obstacle to setting up shop on the Internet. With a little research and planning, acquiring a merchant account can be painless and inexpensive. It can also shield you from less-reputable providers seeking to profit from novice Web merchants.
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