CARD SERVICES INTERNATIONAL

Is your business suffering because you're not able to give your customers the option of online credit card payments? With some 80 - 90% of online transactions using credit cards as the payment method, how much business are you really missing out on by not using credit card processing?

Traditionally setting up a merchant account through a bank will require background checks, upfront costs and limited payment options. However, the prevalence of online businesses has provided for some innovative solutions. Before you race off to the bank you might want to consider some of the different payment options now available for small businesses.

Merchant Accounts from Banks

If you walk into your personal bank be prepared, they are not usually favorable to giving online merchant accounts without a fair size security deposit - if at all. The risks have been weighed and banks make it difficult to get access to credit card information online (for good reasons).

Aside from the approval process and security deposit, banks usually deal with clients on a personal basis. This means your processing rates will depend on your transaction volume - the lower the sales volume the higher the costs. Additionally, you also won't be able to have the account activated as quickly as with other methods. You should also realize that by accepting different card types or currencies you may need to pay more fees or even set up separate accounts. The fees for using a merchant account can be up to $0.35 per transaction.

If you have a physical store that is already set up with a merchant account than you may find it easier to get an online merchant account than a business which is run completely online.

Some banks are now offering new solutions to smaller businesses. While you may not be able to apply online, if you prefer working with a bank you already have a personal or business relationship with, they may have an appropriate service for your needs.

Merchant Accounts from Brokers

Brokers assist with the difficult process of getting a merchant account. Although the monthly fees can be from $20 - $50 per month and the transaction fees anywhere from 1.79-3.25%, it is much easier to arrange, especially when looking for an online merchant account.

Brokers will usually charge a setup fee which can range anywhere from $100 to $1000. Their policies differ and it is advisable to use one based on recommendation or by comparing the benefits and procedures of several before making your decision. Some brokers will waive the monthly fee if no transactions were made and have differences in the cost for chargebacks (when a customer contests a charge).

Third Party Merchant Accounts

One of the easiest options for a new business is to use a third party merchant account. Popular online merchants are Paypal and Stormpay. These third party merchant accounts do not permit you access to the customer's financial information - which is a safety feature for the customer - and are fairly easy to set up.

Using services like Paypal or StormPay effectively gives you permission to make use of their merchant account. You simply pay a transaction fee for every sale processed. You can often accept several currencies and credit cards (even debit) for users of these services. These services also allow for easy refunds and handle the transaction for you every step of the way.

While some of these services require the buyer as well as the seller to be a member, options are now being added that permit the buyer to make a credit card payment without having to set up a membership account.

While the transaction fee (around 2.9%) is higher than some other merchant services, you are not paying monthly fees for the service. You can also setup the account in as little as 10 minutes for some processors. In most cases you will have it up and running within 24 hours. This is a great option for new businesses with little capital to invest. It also provides the opportunity to test out a new business without too much anguish. Whichever way you decide, it is crucial that you very seriously consider offering credit card transactions to your customers before you lose any further business. While each method has its benefits and drawbacks, thankfully there is a solution that will fit your business and improve your bottom line (sales).