An internet merchant account is a special kind of account, used by ecommerce merchants for the purpose of accepting credit and debit card payments online They work by linking the retailing company with a merchant bank, and are needed in order for the merchant to be paid for the online transactions which occur. However, many of them offer additional features, and they all vary in the fees that they charge. Therefore, shopping around for the best merchant account can really pay off.
When you sign up for a merchant account, you can expect to pay a percentage of each sale as part of the cost. This percentage is usually between 1.5% and 3% . In addition, many companies charge a per transaction fee for each sale of about $ .45 cents or less. Plus, depending on who your account provider is, you may be charged statement fees, application fees, start up fees, annual service fees, charge back fees, equipment fees, batch fees, support fees, cancellation fees and more. Be sure to read the fine print, before signing any agreement..
Not only do merchant account providers vary greatly in the fees they charge, they also vary in the added benefits they offer. Many merchant accounts provide free software with their services. Some of these software programs include, Quickbook and ecommerce shopping cart software. Others come with free payment gateway services, that authorize your transactions by communicating with your consumer’s bank. Another great feature that should be available through your merchant account is a virtual terminal. Virtual terminals allow you to manually input credit card information for phone or fax orders, and can help you complete more sales.
There are a great number of ecommerce merchant accounts available to service your business needs. Merchant Express, Charge.com, Merchant Warehouse, FreeAuthNet, Google and PayPal, are numbered among some of the more popular merchant accounts for ecommerce sites. Choosing a merchant account provider should be based on the individual needs of your business.
