Ecommerce Landing The Merchant Account

Ecommerce Landing The Merchant Account



Accepting credit card orders online is​ a​ convenient way to​ do business, especially for​ the​ consumer. There are online businesses that do not use credit card payments, but rather invoice and​ accept either cashiers check or​ money orders. However, in​ most cases this billing process results in​ a​ loss of​ more than half of​ a​ site’s potential customers.

The reasons many businesses do not like to​ accept credit cards are many and​ include financial issues such as​ transaction fees, discount rates, setup, statement and​ application fees as​ well as​ a​ minimum monthly fee. Combined this can take a​ significant bite out of​ your potential profit.

If you are developing an​ ecommerce website you may discover some sites for​ ecommerce development that offer a​ Merchant Account at​ no cost. Others may charge as​ much as​ $500 for​ this type of​ account. What a​ Merchant Account does is​ allow those credit card orders to​ be processed.

The Merchant Account is​ also necessary to​ the​ implementation of​ many online shopping carts. the​ two often work together.

One of​ the​ most compelling reasons to​ pursue a​ Merchant Account is​ to​ expand the​ potential growth of​ your ecommerce website. With a​ credit card sale the​ consumer has a​ level of​ assurance that they will either receive their product or​ they are not held liable for​ the​ purchase by the​ credit card company (in many instances). However, with an​ invoice/pre-payment plan the​ consumer may be wary of​ providing cash for​ something they haven’t received. This is​ especially true when the​ customer is​ new.

In essence, an​ invoicing system might work for​ existing customers, but in​ order to​ grow you may need to​ consider obtaining a​ Merchant Account for​ ecommerce and​ then expanding your marketing plan to​ increase the​ demand for​ your product. in​ turn, growing demand may more than offset the​ fees associated with credit card transactions.

Some small businesses might make use of​ a​ PayPal account in​ lieu of​ a​ Merchant Account in​ order to​ send and​ receive online payments. Fees are required in​ this arrangement as​ well and​ some consumers may not like establishing their own PayPal account just to​ make a​ payment, but this option may be more palatable for​ some online business startups or​ small businesses that operate a​ niche corporation.

The knowledge of​ available tools provides a​ certain empowerment. Online searches can lead you to​ a​ variety of​ Merchant Account providers, but knowing the​ options may help you manage your company goals and​ objectives. Ecommerce is​ a​ big step and​ the​ more you know about available options the​ easier it​ becomes to​ define the​ solution.




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