Merchant Account - eCommerce
If you need a simple online
merchant account and credit card processing solution, we offer a cost
effective merchant account solution that's right for business. Reliable
service from a company you can trust. You can process credit cards and
checks directly from your web site, PC or Terminal.
Merchant account is an agreement that you have with a bank that has agreed
to allow you to charge people's credit card, while they honor it and deposit
the funds into your account. The bank is responsible, via the issued
merchant account, for debiting the funds from the customer and depositing it
into your account. There is usually a processor involved that processes the
credit cards for the bank and lets them known about the funds available.
When you are given a merchant account from a bank, they are relying on you
to uphold your promises to your customers by delivering the products and/or
services to them in a timely manner.
There are two choices to choose from:
1. You can have the power of owning your own merchant account, or
2. You can use another company's merchant account for a fee.
One of the methods is using another company's merchant account. There are
many companies available online that allow you to accept credit cards using
their merchant account. This service allows you to charge customer's credit
cards without owning a merchant account nor having to pay the fees involved
for owning one. Most services in this nature, require you to sell only
tangible items and their rates for the service range about 6% - 9% of each
sale. Some companies may charge a setup fee to get a merchant account
started with them. However, the disadvantages are higher percentage fee,
less control over sales, refunds and charge backs,- Much longer wait to
access your money, limited to only tangible items and the complexity of
going through another company. Also you must use their shopping cart system.
The other method is finding an online merchant service to supply you with a
merchant account. Generally, most providers will have a partnership with
their sponsored bank or they might just be the bank. In most cases, your
merchant provider will set you up with their sponsored bank, and a real time
processor if you choose that type of processing method. Having your own
merchant account is the best way to go for all businesses, even retail. The
advantages can be lower credit card percentage fee, fees refundable on
returns, less expensive on higher volume sites, much shorter wait time for
money, ability to use own ordering system, able to sell any kind of
product/services, More control over sales, refunds & charge-backs. Some of
the disadvantages may be a startup fee, monthly fees.
