Online Merchant Account - Costs and Alternatives


Merchant Account Basics

A Merchant Account is a commercial bank account established by a merchant to receive payment via credit cards. Three parts are required to accept credit cards. Besides a merchant account, you need a local bank checking account to deposit funds and a processing solution, such a terminal or web-based store front to take credit card payments. Online merchant account, or ecommerce merchant account, is a merchant account that can take credit orders on the Web.

Cost of Merchant Account

An online merchant account will boost your online sales, but merchant account incurs various types of cost. A merchant account usually requires a one-time setup fee between $50 - $100. Some merchant account providers waive the setup fee in promotion period or in conjunction with other services. Other costs include gateway fee, statement fee, annual fee, transaction fees and discount rate fees.

Accept Credit Card without Merchant Account

When you first start an online business and have limited resources, the alternative would be to use the services of a credit card processor. You can enjoy the benefits of processing credit card transactions online without the requirements of a merchant account and high costs involved. Paypal, WorldPay, PaySystems and Clickbank are some of popular credit processing services. Popular shopping carts or online storefronts, such as eBay Store, Yahoo! Store and Microsoft bCentral, offer built-in credit card processing capability.

International Merchant Account

International merchant accounts, or Offshore Merchant Accounts, are merchant accounts that allow the merchants to accept payments from around the world-- regardless of where your business or customers are located. Comparing to an online merchant account, two major services that come with an International merchant account are Multiple-Currency Support and International Fraud Protection.

Wireless/Mobile Merchant Account

Mobile merchants used to face unique issues when accepting credit card payments. With the advancement of high-speed wireless networks and mobile technology, mobile businesses are no longer limited in their payment options to just cash or checks.

Many mobile merchant account (http://www.4th-media.net/online_payment/mobile_merchant_account.php) service providers waive application fee and setup fees to attract more businesses. However, the use of wireless service provider does incur the expense of the terminal hardware, activation fee, monthly service fee, and transaction cost.

Copyright @2005, Bruce Zhang

Bruce Zhang has over 10 years experience in developing ecommerce and e-business application such as literature fulfillment.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More E-Commerce Information:

Related Articles


E-marketplaces from Sellers Perspective
What is an E-marketplace anyway?E-marketplace is a business to business web based venue, where buyers and sellers meet online, generate business leads and conduct business transactions. The e-marketplace features are tailored in a manner so that a large numbers of buyers and suppliers can be serviced as a community.
Merchant Account Insider Secrets - Accept Credit Cards Online
The process of learning how to accept payments on the Internet is similar to the course of figuring out how to launch a business. What at first seems puzzling and intimidating may be viewed as straightforward and easy to understand if one has the right guide or manual.
Is Your Website Credit Card Friendly?
In my last column I discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit cards can help increase revenue and enhance cash flow.
Overcoming Frustration with Technology
For whatever reason, when we get a new boost in productivity, whether that be from a tool, technology or technique..
Shopping from Your Cell Phone with Froogle Wireless
Many surfers already know about Froogle, Google's shopping portal that is still in beta testing. Google has now expanded their Froogle service so that it is available on WML-enabled cellular phones.
Online Business- What Makes It a Success!
Only a few manage to sell everything under the sun over the internet. There are billions of web sites running online business, trying to outdo each other by various means.
How Measuring Key Performance Indicators Can Improve E-Commerce Strategy - Part Two
Why time spent on your site is importantAll websites regardless of type should measure this KPI, simply because all websites can use it as a gauge to see how compelling their offers are as well as check web site performance. It doesn't matter whether you're running a content portal or an e-commerce sales operation, time spent on your pages is an important metric to measure.
Bringing the World to Your Door
According to Internet.com, by the year 2008 nearly 30% of offline purchases will be influenced by online research.
How To Turn Any Product You Sell In To Residual Income
The concept of this is for you to offer a subscription type product as an upsell or backend product. For example, if you're selling an ebook for $37 offer a subscription to a related e-zine for $9.
How e-business and e-Marketing are Changing
Internet now days became a real marketplace and many many companies using Internet as a online Selling and Customer Care or Support Tool for their Products and Services.Companies using e-Marketing, Search Engines Optimizations, e-mail eMarketing, Opt-In emailing Lists, Web Sites, Online Website Promotions, Backlinks Increasing, Link Building, Online Stores, Data Feeds, RSS Feeds, RSS Submissions, Business to Business (b2b) Exchange, Sales Force Automation Solution Software's, Online Live Customer Care or Live Support etc.
5 Powerful Ways to Make Money Online with a Website
There are many ways to make money online and the best way for you is to simply be creative with your skills, knowledge, and abilities. However, the following five options are powerful ways to make money online with a website and definite something you should consider.
Six Components Of A Good E-Commerce Site
Businesses, which are still sitting on sidelines and not doing business on the Internet, should think seriously about their position! If you are one of them, chances are there, that you have to pay dearly for your indecision as you might lose significant market share to your more proactive competitors in a very short period of time.Apart from the fact that e-commerce is growing at the rate of more than 25 percent a year, the use of online features can bring efficiency to virtually every aspect of business process, be it supply chain management or customer support management.
Online Shoppers Say They'll Buy from Small and Large E-Businesses Alike
As the holiday shopping season begins in earnest, consumers say they're just as willing to buy from small online retailers as they are from large, national e-commerce providers.In addition to this key finding, a new national survey of 2,500 consumers discovered extremely high levels of consumer participation in - and satisfaction with - shopping on the Internet, despite continuing concerns for security and privacy.
Getting Started: Creating a Business Plan
You're excited. You have a great idea for a profitable online business.
Start doing online business using B2B Portals in Six Steps
I registered with a B2B site but what's next?This is a question many first time users of B2B marketplaces ask themselves. A few expect that the registration itself will bring them a number of new customers.
Short Story: The Benefits of Shopping Online
Maria's new lifestyle: Short story about the benefits shopping on the Net has given to a dedicated artist.I've got this strange friend; her name is Maria.
A Beginners Guide To Setting Up A Successful Online Store
A beginner's guide to setting up a successful online store Online selling is by no means a simple task. To sell products online not only requires making use of high end marketing strategies but also involves lots of planning.
Online Florists - Send Flowers Online When Youre In a Hurry
You did it again, didn't you? Forgot until the last minute that birthday, anniversary, graduation, promotion, or fill-in-the-blank-here. No fear, online florists are here.
How to Boost Conversion Rates, While Lowering Merchant Account Fees!
Using an Address Verification System (AVS) when processing your online credit card transactions can help to reduce the number of fraudulent transactions you receive. However, most online merchants don't know that using AVS can also reduce your number of legitimate orders.
Government Buying and Selling on the Internet
Global Insight, a leading economic and financial forecasting company, (formerly DRI-WEFA), states that all levels of government (federal, state, and local) should see steady increases in the purchases of goods and services through the year 2009.Vendors willing to make the commitment to sell to government can reap the benefits of this projected government spending.