Internet Merchant Account

The Facts About Internet Merchant Accounts
By Mark Woodcock

If you own and operate an online business, then you realize
that without giving your customers the ability to pay for your
merchandise with their credit cards you are not likely to make
much money. Online shopping practically depends on credit card
transactions. Online shopping has never been more prevalent
than it is right now, and the vast majority of online customers
prefer to pay for their goods with their credit cards. That is
why you need to consider opening an Internet merchant account.
By doing so, you will be able to provide a quick and convenient
payment method for your customers, as well as provide your
business the opportunity to expand tremendously.

An Internet merchant account is set up an online merchant
account provider for an online business in order to accept
credit cards as payment from customers. The account provider
works to authorize credit card purchases and makes sure that
the funds are deposited into your business bank account.
Traditionally, merchant accounts were not offered by banks to
online business owners. But, with the increase in online
shopping in recent years, there are a number of Internet
merchant account providers turning up that offer services
specifically to those business owners that market their
products online. Banks still typically do not offer online
merchant accounts, out of fear of credit card fraud. When you
decide to search for an Internet merchant account, since there
are so many providers out there, it is important that you
research all of the factors involved with Internet merchant
accounts, particularly the fees and services, so that your
profits stay with you and your business continues to grow.

There are many potential costs associated with opening and
keeping a merchant account. Not all Internet merchant account
providers will charge these fees. These fees include the
application fee, which is incurred by the provider to cover
application processing costs, no matter if you open a merchant
account or not. Some Internet merchant account providers will
waive the fee if you do open an account with them. And some
merchant account providers don't even charge this fee. Often,
an annual fee is charged on an Internet merchant account as
well. Providers charge this fee for no other reason than for
having an open account with them. There is the statement fee, a
monthly charge that can be as much as $25 per month, which is
imposed to cover the account provider's own costs. Another type
of fee, the discount rate, is deducted from each and every one
of your sales, usually between 2 and 4 percent. The fixed
transaction fee, like the discount fee, is based on each sale,
but is a static amount regardless of the cost of the
merchandise bought, usually .20-.30. There are also various
miscellaneous fees that are levied on your account, including a
termination fee, which is charged if you cancel your account
before the contract is up. Further, there are even charges that
are withdrawn if a customer requests a refund, with the purchase
amount credited back to their credit card.

Obviously, there are many potential hefty costs associated with
an Internet merchant account, and it can take your profits away
from you. It is important that you assess different the
Internet merchant account providers and the fees that they will
charge so that you don't lose money unnecessarily. One way to do
this is by using your current sales data to estimate the costs
of your Internet merchant account.

With an Internet merchant account, payment processing usually
comes in the form of real-time processing. Real-time processing
is ideal for online merchants because the credit card is
directly processed at the time an order is placed. The customer
quickly receives an email notification that the order is
accepted and the fund transfer is approved, once verification
and approval of the credit card is received. There is usually a
slight delay of a few days before the funds will be deposited
into your bank account.

Ideally, you will want to have a sustaining business
relationship with your Internet merchant account provider.
There should be no doubt in the trust or confidence you have in
your provider. In addition to speedy processing of your credit
card sales, your Internet merchant account provider should
offer other services that will allow all of your business
transactions to run smoothly. They should accommodate several
brands of credit cards (Visa, Mastercard, Discover, American
Express, etc.), as well as providing additional payment
alternatives, like PayPal. They should have a clean record of
good service and consistency. And they should be superlative in
providing you customer service. All issues or problems should be
handled tactfully and quickly. Because of the apparent necessity
of having an Internet merchant account, the provider you choose
can make or break your business with fees and service. It is
critical to know the facts about Internet merchant accounts and
their providers so that your business continues to thrive.

About the Author: Mark is a director of 3 Internet Companies,
is a published author and has written many articles on a
widespread number of topics. All his articles may be reproduced
provided that an active link is included to
http://www.merchants-account-services.com

Source: http://www.isnare.com