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