‘Take a second and imagine your shopping on a website, find the product you’ve been looking for, and as you go to the order form to purchase it, you find out that the company doesn’t accept payment online. Instead, you must mail a check. If you were like me, you would probably click off the site and search for another company that offers the same products and *does* accept payment online, whether it is by credit card or online check. It doesn’t take a super, intelligent person to realize that it is inconvenient, time consuming, and adds on lag time till you get your purchase when you must sit down, write out a check, and mail it. That is why it is extremely important that you offer some type of online payment solution for your e-business.
Accepting credit cards is the most well known way to accept payment on the Internet. Almost everyone has a credit card and by accepting his or hers, it makes customers’ ordering process much more convenient and time saving, not to mention it encourages them to purchase from you. Accepting credit cards has become a necessity to the survival of e-businesses.
In order to accept credit cards, you’re going to need a merchant account. To obtain one, just do a search on your favorite search engine. You will be provided with a list of many different merchant account providers to choose from. Merchant services contract with several merchant-processing banks that will actually accept and process your business transactions.
For each transaction the bank processes, you will be charged a discount rate, or percentage, of the face value of the amount charged, along with a per transaction fee (usually ranging from $0.20 to $0.30). When you perform your transaction, and receive an authorization number, the charged amount is immediately wire-transferred out of your customers’ credit card account into your merchant account. The merchant bank will then discount, or deduct, the percentage rate and per transaction fee, and wire-transfer the balance of the charge into the business checking account of your choice. At the end of the month, you will receive a statement, for your records, so that you can balance your account…. ‘
Read more at Credit Card Merchant Service: - Credit Card Merchant Service Merchant Services Resources:
May 28th, 2005 by site admin | Comments Off