Internet Merchant Accounts

Internet based businesses that sell products (information, digital downloads or physical goods) or services need a way to accept payments from their site visitors.  If a customer has to write a check or get a money order, write an address on an envelope, find a stamp and physically mail a payment to a web based business in order to make a purchase, chances are they're going to surf on over to the next website offering the same product or service- but the one that accepts credit cards as payments.

Internet businesses don't have the same needs for physical equipment (terminals) as a brick and mortar retail store or restaurant.  They require a real-time processing merchant account that allows customers to enter their credit card information into a website form during the "check-out" process.  Once the submit or buy button is pressed, the customer account information is transmitted, the money is withdrawn from the cardholder account and eventually deposited into the business owner's bank account as payment for the goods or services.

Getting an Internet Merchant Account

Many people think it is difficult to get approved for a merchant account.   There are numerous merchant account providers however, with some offering approval rates of 98% or more!  Even new businesses can obtain merchant accounts- especially online based businesses.   With so many choices for providers though, it's important that you research and compare the companies before obtaining an account to be sure that the fees you are going to be charged are fair, and that the company offers decent customer service as well as reliable card processing services.

Some people may incorrectly believe that accepting credit cards as a method of payment would be too expensive for their small business.  This may be true if the small business owner attempts to set up a merchant account through the bank, as some banks are charging annual fees as well as per transaction fees- and traditional banks make it harder for small businesses to get approved for the merchant account in the first place.  Thankfully, small businesses can process credit cards by signing up with one of the many online merchant account providers- and typically only pay a small percentage of each sale (about 2-3% of each transaction is paid to the merchant account provider).  This makes it possible for a new business to accept credit cards from the start, and provides a reasonable option for businesses to accept credit cards as payment even if they only need to process a few credit card orders each week.

Advantages of Accepting Credit Cards Online

A successful ecommerce business requires the ability to accept credit cards as a payment method.  Accepting credit cards increases sales for most businesses, and this is especially true with Internet based businesses.  It allows people to shop securely, to spend money even if they don't have it available (which often results in higher per person sale averages), and accepting credit card payments allows for faster shipping of the products that are ordered as there is no need to wait for a check to clear before processing the orders. 

Another advantage of merchant accounts for consumers  is that it gives them the ability to pay for their purchases using their debit cards (with the MasterCard or Visa logo).  Many consumers prefer to use their check cards instead of credit cards or in place of writing a check- to avoid  card fees while still having the convenience of paying with a card.