Merchant Credit Card AccountsHow Merchant Credit Card Accounts Can Increase Your SalesFor your business to accept credit card payments in a safe and secure manner, you need to establish some type of merchant credit card account. Merchant credit card processing can be somewhat confusing, though, so we will take a quick look at how to begin. Credit Card Processing For BusinessIf you operate an online business, you have two ecommerce credit card processing solutions available:
Here, we'll examine the option of having your own merchant account. You can open your own merchant account through any bank that provides credit card online processing. Doing so will require an excellent credit rating and higher setup fees than those charged by "third party payment processors," but the percentage fees charged on each transaction are often significantly lower. And compared to 3rd party credit card processing, you will have more freedom with your own merchant account, but you will also have more work. You will need a so-called "shopping cart" or some other order-taking system on your website, and you may need the services of a skilled webmaster to implement the somewhat complex system on your website. You will also have to record each of your transactions and compute and remit the various sales taxes and foreign VATs whenever they apply. For instance, each country in the European Union has its own VAT rate. Plus, you will be responsible for verifying each transaction to protect yourself from credit card fraud. And if you are just starting an online business, you may find the approval process frustrating. Many banks are reluctant to approve a new business that operates by mail order or online. A third party credit card processing service may be the best option for you to choose in such cases. More About 3rd Party Credit Card Processing Online Credit Card Merchant Account ApplicationYou need to apply for a merchant credit card account. It's not like making a consumer credit card application, and it's not like opening a business checking account. It's a specialized account that permits you to process credit card transactions through a bank offering secure electronic credit card processing. The entire process provides both the customer and yourself a safe, secure transaction from start to finish.Many merchant credit card accounts are provided by third-party vendors, so you don't have to use a particular bank or financial institution. You can choose the credit card processing service that offers the best options for you and your business. Merchant Credit Card FeesYou will sometimes see compelling ads that offer "Free Credit Card Processing For Business," but don't be fooled. You never get anything for nothing. These services may offer "free account setup" or a "free credit card processing machine," but rest assured, there will be fees.Actually, there are three main fees you need to consider:
First, you'll be charged an initial setup fee to approve and establish your account. Next, you'll be charged the percentage fee; it's a percentage of each credit card transaction based on your total volume of sales. The greater your sales volume, the lower your percentage fee. Finally, you will likely be charged a monthly service fee. This often covers the use of any credit card processing machines, software, or services. The amount of these fees will vary among the different credit card processing companies so this is one of those times when it does pay to shop around. You need to take all three of these fees into consideration. For example, one service may have the lowest setup fees, but the monthly service fees might be significantly higher, or they may charge a higher percentage fee on each transaction. You will have to decide which is best for your particular circumstance. When looking at the percentage fee, think about your current sales volume and what you think it might be in twelve month's time. Your percentage fee may be lowered if your sales increase. However, don't base your final decision on just one fee, consider all three if you wish to reduce credit card processing fees. Also, be sure to examine the fine print of any account agreement or contract before signing, especially your contract obligations. Some cheap online credit card processing services offer seemingly great deals, but they require you to sign on for a long time. Check to see what, if any, penalty charges will apply if you ever need to break the contract because you go out of business or discover a much better offer. Credit Card FraudWhether you operate your business online or offline, the chances are that someday soon your business could be a victim of credit card fraud. It's an unpleasant experience that could prove costly. Therefore, it is vital that you protect your merchant account and prevent credit card fraud at all costs.Thankfully, there are simple steps you can take to turn the tables in your favor and eliminate much of the risk. These days, the need to detect and report credit card fraud is simply an unfortunate part of doing business. How To Detect And Report Credit Card Fraud Summing UpThe benefits offered by merchant credit card accounts greatly outweigh any possible problems. Most online and offline merchants who accept credit card payments online will testify that doing so has definitely increased sales.There is no doubt about it, you need to accept credit cards to do business today, and for many businesses merchant credit card accounts offer the best solution. More About Electronic Credit Card Processing TOP of Merchant Credit Card Accounts RETURN to Credit Card Processing For Business HOME to Get The Best Credit Cards
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