Do-It-Yourself Ecommerce

It’s a fact that people nowadays have accepted credit cards as a viable alternative to actual cash.  Credit cards are more convenient to carry and, actually, in some instances are easier to use.  With 1.5 billion credit card holders in the world and a global network of 800 million merchants who accept credit cards as payment, you’re assured of a stable and credible system of transaction for the goods and services you want to buy.

With the increase in online sales, credit card processing has become doubly important for many businesses who wish to establish an ecommerce site.  Many sales can be generated online, and credit cards are the payment solutions of choice for countless buyers on the Internet, especially with the convenience and accessibility afforded by secure transactions. 

Let me put it bluntly - you can’t expect to do business online without being able to process credit card payments. It’s the same in both the real world and online - if you want to sell products, you need to employ a secure way to process credit card payments.  This can be done through merchant accounts.

A merchant account is a system that allows your business to accept credit cards as payments.  These payments are then deposited by the merchant account provider under escrow to a fund.  After the lapse of a specified period of time, the money would be transferred to another account of your choice, normally your business bank account.

Obviously, you can’t use cash payments online and checks through the mail (snail-mail) are extremely limiting to your business. PayPal started as a way to exchange funds online and has since expanded into a service that also accepts credit cards on your behalf. But I feel it’s best to have your own merchant account to accept credit card payments.

Why? Because it shows that you are an established business. The rates you pay for processing credit cards are usually cheaper. The money arrives in your bank account faster. Plus, using a third-party credit card processor carries certain risks.

I’ve read stories of merchants who start a marketing campaign for a product that sells well. Since third-party processors are on the hook for chargebacks, they are extremely leery of sudden increases in sales and may even shut your operation down if they fear a large number of chargebacks.

Here are some things to consider when choosing the right merchant account for your business:

• Choose a merchant account that accepts a wide variety of credit cards, the more, the better.  Visa, Mastercard and American Express are almost mandatory, and accepting more credit cards offers shoppers a convenience that may increase your sales.
• Check to see what you will actually be paying for the merchant account service.  Some merchant accounts have a minimum monthly fee.  Some base their rates on a percentage of the amount you have acquired per period.  Most charge a onetime setup fee.  You would have to study the sales you are expecting to garner and compare them with the billing methods of these merchant accounts.
• Choose a merchant account with an excellent technical support system.  Your merchant account will gradually become the heart of your business and you can’t afford any slowdowns caused by glitches in the system.

Do your research, but I recommend you start by looking at the merchant account provider I use. They have highly competitive rates, fast response and great technical support. They can also provide your payment gateway.