| If you own and operate an online business, then you | | | | percent. The fixed transaction fee, like the discount |
| realize that without giving your customers the ability | | | | fee, is based on each sale, but is a static amount |
| to pay for your merchandise with their credit cards | | | | regardless of the cost of the merchandise bought, |
| you are not likely to make much money. Online | | | | usually .20-.30. There are also various miscellaneous |
| shopping practically depends on credit card | | | | fees that are levied on your account, including a |
| transactions. Online shopping has never been more | | | | termination fee, which is charged if you cancel your |
| prevalent than it is right now, and the vast majority | | | | account before the contract is up. Further, there are |
| of online customers prefer to pay for their goods | | | | even charges that are withdrawn if a customer |
| with their credit cards. That is why you need to | | | | requests a refund, with the purchase amount |
| consider opening an Internet merchant account. By | | | | credited back to their credit card. |
| doing so, you will be able to provide a quick and | | | | Obviously, there are many potential hefty costs |
| convenient payment method for your customers, as | | | | associated with an Internet merchant account, and it |
| well as provide your business the opportunity to | | | | can take your profits away from you. It is important |
| expand tremendously. | | | | that you assess different the Internet merchant |
| An Internet merchant account is set up an online | | | | account providers and the fees that they will charge |
| merchant account provider for an online business in | | | | so that you don't lose money unnecessarily. One way |
| order to accept credit cards as payment from | | | | to do this is by using your current sales data to |
| customers. The account provider works to authorize | | | | estimate the costs of your Internet merchant |
| credit card purchases and makes sure that the funds | | | | account. |
| are deposited into your business bank account. | | | | With an Internet merchant account, payment |
| Traditionally, merchant accounts were not offered by | | | | processing usually comes in the form of real-time |
| banks to online business owners. But, with the | | | | processing. Real-time processing is ideal for online |
| increase in online shopping in recent years, there are | | | | merchants because the credit card is directly |
| a number of Internet merchant account providers | | | | processed at the time an order is placed. The |
| turning up that offer services specifically to those | | | | customer quickly receives an email notification that |
| business owners that market their products online. | | | | the order is accepted and the fund transfer is |
| Banks still typically do not offer online merchant | | | | approved, once verification and approval of the credit |
| accounts, out of fear of credit card fraud. When you | | | | card is received. There is usually a slight delay of a |
| decide to search for an Internet merchant account, | | | | few days before the funds will be deposited into |
| since there are so many providers out there, it is | | | | your bank account. |
| important that you research all of the factors | | | | Ideally, you will want to have a sustaining business |
| involved with Internet merchant accounts, particularly | | | | relationship with your Internet merchant account |
| the fees and services, so that your profits stay with | | | | provider. There should be no doubt in the trust or |
| you and your business continues to grow. | | | | confidence you have in your provider. In addition to |
| There are many potential costs associated with | | | | speedy processing of your credit card sales, your |
| opening and keeping a merchant account. Not all | | | | Internet merchant account provider should offer |
| Internet merchant account providers will charge | | | | other services that will allow all of your business |
| these fees. These fees include the application fee, | | | | transactions to run smoothly. They should |
| which is incurred by the provider to cover application | | | | accommodate several brands of credit cards (Visa, |
| processing costs, no matter if you open a merchant | | | | Mastercard, Discover, American Express, etc.), as well |
| account or not. Some Internet merchant account | | | | as providing additional payment alternatives, like |
| providers will waive the fee if you do open an | | | | PayPal. They should have a clean record of good |
| account with them. And some merchant account | | | | service and consistency. And they should be |
| providers don't even charge this fee. Often, an annual | | | | superlative in providing you customer service. All |
| fee is charged on an Internet merchant account as | | | | issues or problems should be handled tactfully and |
| well. Providers charge this fee for no other reason | | | | quickly. Because of the apparent necessity of having |
| than for having an open account with them. There is | | | | an Internet merchant account, the provider you |
| the statement fee, a monthly charge that can be as | | | | choose can make or break your business with fees |
| much as $25 per month, which is imposed to cover | | | | and service. It is critical to know the facts about |
| the account provider's own costs. Another type of | | | | Internet merchant accounts and their providers so |
| fee, the discount rate, is deducted from each and | | | | that your business continues to thrive. |
| every one of your sales, usually between 2 and 4 | | | | |