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