Online merchant accounts are essential tools for any modern business, no matter the volume of payments it processes. With the internet rapidly taking over as the preferred payment method when it comes to practically all products, subscriptions, and services, the ability to accept customers’ credit cards is essential for a modern business. Online merchant accounts are the way to do that.
Understanding what is involved can help any business owner budget for a merchant account and weigh the benefits while getting a grasp of PCI regulations can make their lives easier in general.
1. Calculate fees
Choosing the right merchant account provider will mean that there are no application fees, no setup fees, and no cancellation fees down the road. But there are always transaction fees associated with accepting online payment.
The “discount rate” is the percentage of each transaction that the merchant pays in order to be able to accept credit cards. These can vary significantly from one merchant account provider to the next, so shop around. Make sure that the merchant account provider you select offers low price assurance so that you can be sure you are getting the best deal anywhere.
2. Understand risk level
This calculation primarily depends upon industry risk. If a company is labeled as “high-risk,” it usually means that the company’s industry is one that historically has had a higher rate of chargebacks. Some examples are timeshares, gambling, pharmaceuticals, and travel.
Payment processors take a greater risk for offering their services to high-risk merchants, because the payment processor is responsible for funding any chargebacks, even if the payment processor is unable to obtain that money from the merchant. Businesses that are in high-risk industries may be offered higher discount rates or even be declined, unless they select a provider that works with so-called “high-risk” businesses.
3. Understand PCI Regulations
PCI (or payment card industry) guidelines exist to protect customers from online stores that lack basic security protection. For an online merchant, firewall protection, encrypted transactions, and other PCI-compliance features can help them avoid fraud. Failure to comply with PCI guidelines can result in increased liability as well as fines. Online merchant account providers can provide assistance in becoming PCI compliant.
Obtaining an online merchant account can be difficult for businesses that are high-risk ach as well as those that want to avoid certain fees. These accounts are essential for modern businesses, and with the right merchant account provider, business owners can get what they are looking for at a price they can afford.
Visit Charge.com or call (888) 924-2743 to view options for internet merchant account services that offer products and software no matter a business’s risk level.