Many more businesses are setting up websites to reach a wider customer base – one important step in the process is to figure out how to accept payments. Offering customers a number of choices not only boosts business credibility but it also offers casual browsers to buy products.
How to set up a merchant account:
Here’s a look at some of the questions that new business owners face and how they can set up payment processes. Understanding some of the concepts and intricacies of a process makes it easier to become a savvy business owner.
What is online credit card processing and why is it needed?
The high risk merchant accounts providers can be described as the service to aid you the way by which businesses accept payments from customers. Customers can use credit/debit cards offered by all major companies and pay for goods. Just like cards being swiped at the terminal of a local store, online shoppers provide their credit card information. Since there is no terminal, the mode of payment is different. Payment gateways and credit card processors are the links which help process information and payments.
Online businesses offer customers a lot of benefits like being open 24/7, convenient shopping by letting them know the number of items still available, secure portals where sensitive financial information is handled safely and a variety of payment methods.
Why online merchant accounts?
There are many options for customers to choose from like PayPal, Google Wallet and credit cards. Online merchant accounts offer fast checkouts, lack of passwords and receiving goods faster. Many times, people want to buy products but have to abandon carts as they don’t remember passwords to different sites. Customers may not realize that credit card processors offer a good fee structure to merchants and letting them keep more of their money.
How much does it cost to work with online credit card processors?
There are 2 categories of fees that one should be aware of and which are charged every month.
Standard fees like discount rate (industry average 2-3%), gateway fees, transaction fees (.25-.35¢per transaction) and statement fees ($10-15/month). Statements list all the transactions that a merchant has during a month and other details pertaining to these transactions.