Online business is a rapidly growing portion of the economy, and even traditional brick-and-mortar businesses are seeing larger and larger percentages of their transactions taking place online. As this transformation takes place, many business owners find themselves wondering whether a dedicated internet merchant account is a better choice than other services that may offer credit card processing online.
Online services that do not involve a merchant account typically charge extremely high transaction fees, typically at least 3%, and sometimes as high as 25%! While these services can seem attractive if they have low sign-up fees or low or no monthly fees, but they can be very costly in the long run.
By comparison, an internet merchant account is set up specifically to receive credit and debit payments and is meant for long-term partnerships and use. Some internet merchant accounts also waive set-up fees, making them functionally just as easy and inexpensive to set up as a any other credit card processing online service.
When Businesses Should Use A Credit Card Processing Online Services
For the most part, businesses will be better served by an internet merchant account, but there may be times when a free service may be an adequate solution. They include:
- Businesses whose owners are looking for a temporary solution.
- Businesses that don’t want online sales being a long-term part of their business.
- Businesses that have a no online sales most months.
Of course, none of these are ideal and having a dedicated internet merchant account to build a web presence and business around can even be a solution to these problems.
When Businesses Should Use An Internet Merchant Account
On the other hand, an internet merchant account is an excellent solution for people looking for a better option for their online payment processing. Businesses with an online presence, regardless of scale, can benefit from having a strong payment system to support them. Specifically, business owners should consider an internet merchant account if:
- A significant or growing portion of sales are done online.
- A significant or growing portion of sales are done by credit card (be it online or in-person)
- Your web presence is centered around sales, and not just information and advertising.
In summary, any business that sees a significant volume of credit card transactions, especially online, should consider a dedicated internet merchant account for their needs. In the long term, and in many cases the short term as well, it’s a more robust and cost effective solution.
The ability to process credit cards is essential for any business owner who runs even a small part of their business online, and while there are many services that advertise credit card processing online, businesses owners are advised to consider what their long term business needs may be, and if an internet merchant account would not be a better fit. Quotes and more information on internet merchant accounts can be found online at Charge.Com or by calling (888)924-2743