If you are not
familiar with online payment alternatives to accept payment online you
have come to the right place. Online payment accounts such as Merchant
accounts and accepting credit cards online can be the most important
step you need to take to enter the world of internet commerce. Without
it you cannot accept payment online from your customers. Accepting
payment online cannot be undertaken without a credit card merchant
account or 3rd party credit card processor.
So what kind of
online payment processing options are available? There are two major
online payment processing options. They are:
Merchant Account
A merchant account is a bank account that consolidates your payments
from credit cards, debit cards, electronic checks and other payment
processing services to enable to accept payment online. The merchant account is usually set up with a bank
that is a registered to offer credit card processing.
Third Party Credit
Card Processor?
A Third Party credit card processor
is a company that will accept credit card payments on behalf of you or
your company. The payments that are made on your site are processed
through the Third Party's own merchant account, and you the retailer is
paid (minus a commission fee) by the Third Party processor.
Advantages of using a 3rd party credit
card processor is there is no requirement to pay and use costly
processing software as well as not being charged minimum transaction
fees or monthly fees. You are only charged a percentage fee on a
sale which makes it more cheaper and affordable than opening a merchant
account with a bank. This site will deal with the pros and cons of both
systems and why you would use a
Merchant Account or
3rd Third Party credit card Processing companies.
