| So you've finally decided to explore the revenue | | | | Third party |
| channel offered by the Internet. Accepting credit cards | | | | Most banks are not too keen in accepting start up |
| via the Internet has paved the way for merchants to | | | | businesses, and their ecommerce services are still at |
| increase their income. With more consumers shopping | | | | the developing stage. Getting a merchant account |
| online, it's a profitable decision for businesses to | | | | through a bank not only depends on how large your |
| provide credit card payment processing on their | | | | business is, but also on what kind of business you're |
| websites. The question would then be, where do you | | | | doing. Businesses in the field of pharmacy, gambling, |
| begin? | | | | adult entertainment, and travel usually won't even dare |
| Here are the 3 major components of credit card | | | | knock on the doors of these banks for it's just a |
| processing: | | | | waste of time. |
| Payment Gateway | | | | Brokers, on the other hand, can help you obtain a |
| A payment gateway manages the secure transfer of | | | | merchant account by acting as your representative to |
| credit card funds of your customers from your | | | | the bank. They make your business more appealing, |
| website to your merchant account. This is done with a | | | | and improve your chances of getting your own |
| software interface provided by the payment gateway | | | | merchant account. However, like banks, they steer |
| company that collects vital credit card data from the | | | | clear of high risk merchants, and you might have to |
| customer, and also informs the customer in real time if | | | | produce documents (business plans, personal net |
| their credit card was approved or not. Payment | | | | worth, mortgage and credit card bills) to prove your |
| gateway companies normally charge a transaction fee | | | | business worth. |
| and a discount rate for this kind of service. Fees will | | | | Still unsuccessful with the first two options, most |
| vary from one processor to another, as well as | | | | merchants are more than willing to get a free |
| features. | | | | merchant account via third party processor. Application |
| The three "ty's" of payment gateways:scalability (can | | | | is simple and most third party processors will waive |
| they handle varying transaction volumes)reliability (do | | | | application/set up fees, and provide value-added |
| their servers provide 99.9% uptime)security (fraud | | | | services for free. Most processors have a "sell nothing, |
| prevention tools, Address Verification Service, 128-bit | | | | pay nothing" policy, and caters to most high risk |
| Secure Sockets Layer (SSL) technology, PCI | | | | merchants turned down by banks and brokers. |
| compliance) | | | | Account approval is quick, and you can start selling in |
| Without the proper security tools you are vulnerable to | | | | less than 24 hours. However, third party processors |
| pilferers, and credit card scammers, and you don't | | | | can charge slightly higher on transactions unlike having |
| want that happening on your site. | | | | your own Internet merchant account. |
| Merchant Account | | | | Website |
| A merchant account is an account with a bank that | | | | Without a functional website, you won't be able to sell |
| allows you to accept credit card payments. The | | | | your products and services on the Internet. Merchant |
| payment gateway wires the billing information to the | | | | account providers sometimes offer site templates to |
| merchant account provider, and subsequently collects | | | | choose from, and payment gateways offer shopping |
| the funds from the customer's account. | | | | carts that are seamlessly incorporated on your site. |
| Two kinds of merchant accounts: | | | | The key words here are: easily integrated. If you can't |
| 'card present' - retail and Point of Sale(POS) | | | | integrate, you can't sell. |
| merchants | | | | In general, these three are the main factors when |
| 'card not present' - Mail Order/Telephone Order | | | | accepting credit card payments over the Internet. |
| (MOTO), and Internet Merchants. | | | | Having these three won't guarantee a successful |
| An Internet Merchant Account enables credit card | | | | online business, but are imperative if you plan on |
| payments via the Internet. You can gain an Internet | | | | engaging in ecommerce. Search the web for the best |
| merchant account in three ways: | | | | solution you feel can help your business succeed. |
| Through a reputable bank | | | | Merchants have long tapped the revenue potential of |
| Broker or intermediary | | | | the ecommerce market, its about time you do. |