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.