The web has emerged as a remarkably potent platform for all sorts of businesses, promising way better exposure compared to any traditional alternative. Today, eCommerce is a $200 billion-dollar industry that no retail business can afford to ignore. In fact, establishing an online presence is extremely important for direct sales entities in order to sustain and thrive in the current Internet-driven era. Even for start-ups, e-commerce represents an attractive option, attributable to minimal set-up costs. In order to leverage the digital medium, however, one key requisite that you will need to come face-to-face with and fulfill to the best of your ability is the need for an Internet merchant account.
What is an Internet Merchant Account?
A merchant account is a special type of bank account that enables businesses to accept credit and debit card payments from consumers, over the web. When a customer shops online, the transaction amount is first deposited in the seller’s merchant account, after which it gets transferred to their bank account, upon authorization by the card-issuing bank.
Types of Merchant Accounts
There is a regular merchant account and another type that is reserved for high risk businesses. ‘High-risk’ businesses include gambling websites, adult websites, telemarketers, travel agents, betting websites, and various others. A high-risk merchant account will cost you a bit more than the garden variety, due to the added risk factor. It is thus important to establish which merchant account is right for you before you go out to shop for one.
Other Factors to Consider
Payment Gateway
A merchant account is supposed to give you convenience and reliability. This can only be assured if you go for a reliable payment gateway. If clients experience occasional or regular problems with your payment system, it may result in negative consequences in the long run.
Points of Sale
You need to find a solution that complements your business model. If you have an eCommerce website as well as a brick and mortar store, it is advisable to go for a unified payment processing solution that enables you to consolidate all your transactions and other critical data.
Cost
Merchant accounts attract a fee which is a certain percentage of the transactions being processed. This makes it important to ensure that the service that you opt for does not erode your profitability. Some dodgy service provider would hoodwink you with contracts that contain hidden clauses which have the effect of inflating the original agreed-upon fees. Make sure there are no hidden fees or vague clauses and that the charges are commensurate with the size and model of your business.
Setup Time
New applications usually get processed in a few days, but in some cases it may take anywhere up to three weeks. Especially if you have a high risk business, the setup may take longer than usual.
Finding a Provider
There are several payment processing solution providers that you can easily locate online. Make a list of some credible ones and go through their client reviews. You can then discuss your requirements with their representatives in order to decide the suitability of the options on hand.