Your Business Needs to Accept Credit Cards
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If you have an onlince pressence with ecommerce capabilities today then you know that you have to accept credit card accept credit card payments. If your customer can’t use their credit card to purchase products at your store then odds are they’ll just leave your site and find an ecommerce business that does accept credit cards. Credit card acceptance increases the credibility of your business and therefore your products, without credit card acceptance you have no ecommerce capabilities.
In order to merchant account accept credit card payments at your online store you need to open a merchant account and use a payment gateway processor to communicate between your web site, the customer’s credit card account and your merchant account. Here is what transpires during an online shopping experience: A customer adds items to their shopping cart and then proceeds to checkout when they are through shopping. Via the stores secure area they input their personal data into an online form. THeir personal information is encrypted by the gateway processor and sent to the customer’s credit card account and then credited to your merchant account. This is all done behind the scenes and the customer in most casses ian’t even aware that there has been a gateway processor involved in the transaction. After that they are returned normally to a page that thanks them for their purchase and gives them some additional links to follow.
In Order to Accept Credit Cards You Need to Open A Merchant Account
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A merchant account is opened for your business between you and your bank of choice. There is an application to fill out and an approval process to qualify. Look at a merchant account as a loan from the bank to your business. Your customer purchases your products and uses their credit card. You fullfill the order and ship it and process the credit card charge. The bank “lends” you the money until the customer receives and accepts the product.
Merchant accounts can only be extended to business’s. The business should probably be set up as a corporation or limited liability corporation. You will need to obtain a Federal Tax ID number, ans a reseller ID number. The second step is to open a business checking account. If you do this at one of the major banks you have the option of applying for a merchant account at that bank. Having both accounts at one bank simplifies things. However don’t automatically use your own bank for the merchant account. You need to compare fees and services as well as convenience and choose accordingly.
The last step is to select the bank for the merchant account and complete their application. Finally you’ll need to find a gateway processor if the card will be used for online sales. A gateway processor is an independent third party that interacts between your ecommerce website and your merchant account.
What Does A Merchant Account Cost?
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Merchant accounts are fee based and you need to shop around and find what works best for you. There are flat montly rates and per transaction fees and these vary from bank to bank. Some banks charge an application fee as well, and some will waive the application fee during a special or promotion. When you account is ready to go when a charge is made there will be a transaction fee and a discount rate or percentage of the product’s price. There can also be a minimum sales volume fee. If your account doesn’t generate sales of specified minimum level you have to pay the volume fee. This fees is based on the risk the bank assumes by approving the account.
Online transactions are considered riskier than in person transactions because the physical card isn’t swiped. It is easier for an online merchant to commit credit card fraud than a brick and mortar business since you are not face to face with that consumer. Another factor considered in determining the fees is what type of business you conduct. Some types have a higher fraud incidence than others and thus pay a higher rate.
At First Data Independent Sales Ventura County Here Is What We Can Offer You That Our Competition Can’t:
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- 2.09%, 25 cents per transaction and $15.00 per month
- No Monthly commitment
- Cancel at any time with no closure fees
- We offer the safest solutions in the industry
- Risk free trial for 30 days
- Free credit card acceptance machine or free payment gateway
- Free shopping cart
- Increase your sales an average of 15% with one of our custom solutions
- Open your doors to millions of customers worldwide by accepting credit cards
- Free 24 - 7 phone and online support
- Simple solutions that are easy to understand and are very user friendly
- Credit card acceptance rates that can’t be beat
- First Data Independent Sales Ventura County is a leader in the merchant processing industry with the latest technologies and the latest equipment and software. Such as: New Contactless Payment Technology Showcased at Democratic National Convention
So What Are You Waiting For Call Us Today At: (866) 757-1524
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Copyright © 2008 Credit Cards: from Choosing Best Credit Card to Application
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