Introduction
Many companies providing their products or services to today’s technologically driven society will see the value of utilizing credit card processing services in serving their clients. The choice to shop online has become more prevalent than ever, thanks to the accessibility and technological know how of most online clients. However, navigating the ins and outs of credit card services merchants can be a bit daunting to most online entrepreneurs. Therefore, we shall explore the major factors that make up credit card services merchant and the benefits they pose for an online business.
Step 1
By accepting credit cards to process payments for goods or services sold on your website, you will be opening up your business to a whole new stream of revenue. However, in order to process those payments you will need to use the services of a credit card services merchant. Basic credit card merchant processing terminals are relatively cheap, costing around $200. High end wireless models will cost around $1,000. They are generally easy to set up, requiring only a phone line and some paper fore printing receipts.
Step 2
Credit card services merchant companies will charge a fee for their services, based on a percentage of every sale you make. However, this charge is usually quite small, ranging between 1.5 to 2 percent. There have been concerns as to the safety of credit card merchant services, due to the cases of fraudulent transactions or stolen credit cards. However, credit card companies have taken great strides to protect their customers from credit card fraud and are always looking for ways and means to assist business owners and customers to avoid processing illicit transactions.
Step 3
When selecting a credit card services merchant, there are a number of options you could consider. These include:
Independent sales organizations which act as middlemen in marketing the services of a merchant bank to online business owners. They are allowed to mark up the fees charged by the bank, while singing up online businesses.
Step 4
In most circumstances, your regular bank should be able to process credit card services merchant for your online business. If they not able to process the transactions themselves, they could opt to outsource the services to a third party entity.
Step 5
Different brands of credit cards will handle credit card services merchant differently. For instance, MasterCard, Visa and Discover will require that you set up a merchant account with an intermediary organization before they can accept to offer credit card processing for your online business. In contrast, American Express will assist you directly to setup a merchant account.
Tips
International merchant companies, also referred to as offshore merchant accounts, are usually utilized by business with a poor credit report, odd location, or a variety of reasons which prevent a business from accessing credit card services merchant companies located within the United States. However, you should be cautious while using this option due to the fact that they are not regulated in the same manner as merchant processing companies located in the U.S.
Sources and Citations
While choosing a credit card services merchant, you should ensure to understand all the fees, the funds transfer process, and the terms and conditions for using their services.
