How to accept Credit card payments on the Internet?

To begin accepting credit cards for your business will give your income a definitive boost! Once you’ve decided to start accepting credit card payments over the internet, you will come across a wide range of options that are open to you. To get a quick start in accepting credit cards on the Internet, you need to understand the basic concepts of merchant accounts and credit card processing. That will equip you to correctly decide exactly what's right for you.

You can use three methods to accept credit cards online. You can either acquire your own merchant account directly from your bank, use a broker or intermediary to gain a merchant account or you can use a third party service.

The first option is the most direct route of gaining a merchant account. Once you open a business account with a bank, they will most likely furnish all merchant account details and service information on their own. The problem may arise when you’re asked to deposit 12 months or more of audited accounts, business plans or evidence of considerable investment capital. You may be asked to prove that you're financially solvent. Minimize your debt wherever possible, because you may be asked to present details of your credit card bill, mortgage and more. You may have to answer a million questions regarding guarantees on your products, monthly overheads of your business and past fraud, if any. The aim is not just to be accepted but to look safer so that the rates you are offered are better.

Also, the kind of business you intend to open plays a huge role. For instance, if you are going to conduct business through a retail store front, then the merchant account will be easier to acquire. This is because in a brick and mortar business establishment, the credit card is to be physically swiped through the credit card equipment and a receipt is printed and signed by the customer. The risk of fraud is negligible.

In sharp contrast, the transactions carried out over the internet are at a greater risk of fraud. The number is simply typed on the user interface, but there is no way to check the signature. Thus, you may consider gaining a merchant account through the second route - using an intermediary.

Intermediate companies that you hire to get you a merchant account act as a link between you and the bank. These companies specialize in acquiring merchant accounts for clients. With experience in this line of work, they have considerable knowledge of what banks look for in a new client. Accordingly, they can prepare your application to agree with those requirements and make your business look like a safe bet to make sure that your application is not rejected. Most merchant account intermediaries set down the money paid by your customers within 24-48 hours, helping to keep your business finances buoyant, enabling you to grow your business fast.

Finally, you may also accept credit cards for your business through a third party service. While utilizing a third party account, a merchant uses the merchant account of that service provider. All you need to do is fill out an application and submit an application fee. Many third party processors also offer additional services, some paid for, some free. The drawback is that third party processors take an average of 14-28 days to complete payments. Also the fees charge by third party credit card processors are far higher than those charged to businesses that possess their own merchant account. Even the credit card slip will not show the name of your business but of the third part credit card processing company that you have working for you. You’re also less in control here!

Which one of these three alternatives suits you best? This question will be answered by the type of business you have. Here’s hoping that the above information has already directed you towards making the correct decision!
For more information , visit Credit Card Processing and Merchant Account Services.

Jack Chevalier