Accept Credit Cards on a Website
Growing Your Business – How To Accept Credit Cards on a Website
In the fast paced age of the internet, not accepting credit cards can be a death blow to a growing business trying to make a name for itself on the web. Customers are unwilling to send checks online when they can move on to the next merchant and pay by credit card. It is imperative that businesses that wish to grow and thrive learn how to accept credit cards online.
Decide on an Account Type
The first step is determining if your business will be using its own merchant account or using a third party merchant account. Each type has its own advantages and disadvantages.
To get your own account, your business will need to open a merchant account at a bank. Each country has its own requirements and restrictions. Your bank can give you more information about opening a merchant account. Using your own account adds a degree of professionalism to your website, but can come with a hefty start up cost, and the liability of accepting your own credit card transactions.
Third party merchants are a better choice for smaller businesses that lack the capital and infrastructure to handle their own transactions. A third party merchant handles all the back-end involved in processing credit card payments, but for a higher transaction fee.
Choosing a Merchant
If you’re setting up your own merchant account, you’ll be handling all credit card transactions yourself, and your local bank can walk you through the proper steps. If you choose to use a third party merchant, you’ll want to pick a company with a proven track record, good administration, and reliability. Here are a few of the more well known merchants.
Paypal: One of the forefathers of internet commerce, Paypal is both reliable and easy to use. Personal accounts cannot accept credit card payments, but Premier and Business accounts can, and per transaction, it’s cheaper than most other 3rd party merchants.
Amazon Store: The web store at Amazon gives the seller access to the customers from the Amazon search engine. They use a per month charge, but are reputable and recognizable.
Google Checkout: With prices comparable to Paypal, Google Checkout allows merchants to sell goods, both real and digital, as well as services and subscriptions.
CCNow: A 3rd party merchant for physical goods. They charge a retail margin of about 5% with small fees for extra services.
Setting up Your Shop
Most of the third party merchants offer pre-made forms that you can customize to fit the theme and layout of your website. Some merchants, like Amazon, allow you to create your entire site within the boundary of their main merchant site, saving you money on hosting services for your company.
Whether you choose a 3rd party merchant, or you decide to set up your own merchant account, it’s important that you use the most secure options available. More and more consumers are venturing online for their shopping needs. Customer trust is a valuable commodity, and any business looking to participate in e-commerce must learn how to accept credit cards online in a safe and secure way.