Once you decide which merchandise you are planning to sell on the
Web, and what type of web store you are likely to use to display your products; next vital choice that you have
to make is to work out how your customers will pay you.
Taking credit card
transactions are a must for anything you plan to sell online! A complete 90 percent of all internet sales
occur through charge card payments.
There are two methods for you to add e-commerce capabilities to your
1 . Having your merchant account
2 . Using 3rd party processors
What is a merchant account?
The merchant account is a particular type of bank account where funds
obtained from credit card transactions tend to be first routed to the
unique account and held there before being remitted to your
company account. You, as an on-the-internet merchant, will need an account
known as “Card Not Present Service provider Account.”
Having a merchant account is usually the first step in
handling credit cards online. You will also have to have a payment
gateway. A settlement gateway is a service offered by a billing processor that allows real-time authorization of online
The payment gateway you choose has to
work with your shopping cart. Three top-rated payment Gateway
providers are generally AuthorizeNet (http://www.authorizenet.com/),
Verisign (http://www.verisign.com/) and USAePay
(http://www.usaepay.com/). Most payment gateway providers get
their merchant solutions. Almost all banks today work with
spouse payment gateway providers and are also fully capable of
furnishing, which has a merchant solution.
If you are only starting an online business and you do not think
that your sales will make more than a thousand dollars some sort of
month, you will be better involved with a third-party processor.
Nonetheless, once your sales get a few thousand, you will save some sort of
bundle by switching to your merchant account.
With seventy-two million accounts worldwide along with payment volume, which is
expanding at a rate of 44 pct each year, PayPal, by far, could be the
the most popular third-party processor on the net.
PayPal is a simple and reasonably priced payment solution for those
on the web who are unable to or may not want to go through the complex process of setting up a traditional bank merchant account.
At present, PayPal possesses four unique solutions for merchants.
PayPal Website Repayments Standard: This solution enables you to
accept credit cards on your website. However, the transaction is
processed on the PayPal safe server. The customer can choose to
pay either by charge card or PayPal. If you don’t have buying
cart as yet, you may get one from PayPal; or you can incorporate
PayPal solution to your current shopping cart.
Cost: No month-to-month fee. No setup charges. No cancellation fees.
Deal Fees are 1 . 9% to 2 . 9% & $0. 30 US$.
PayPal Website Payments Pro: This solution is the same as
getting your merchant account. If a client pays by credit card, PayPal works as a payment portal for you. The customer does not keep your website at any time if this lady pays you by a
Cost: $20. 00 US$ monthly fee. No, build-up fees. No cancellation
service fees. Transaction Fees are installment payments on your 2% to 2 . 9% + $0. 30 US$.
PayPal Email Payments: This can be the payment system PayPal started
using. You send invoices to your customers by email and acquire paid on
Charge: No monthly fee. Zero setup fees. No termination fees.
Transaction Fees are generally 1 . 9% to installment payments on your 9% + $0. 30th US$.
PayPal as an Extra Payment Option: If you already possess a
merchant account and would like to include PayPal in your
existing transaction solutions, you can use this option.
When you plan to sell products through auction websites, you definitely
should have a PayPal choice. According to eBay, three of four
eBay customers decide to pay by PayPal.
If you use PayPal as your primary processor chip, ensure you have at least one more helpful alternative payment solution. The
reason is numerous disgruntled former users involving PayPal claim that
PayPal may well freeze your account at any time without any apparent
reason. Learn http://www.PayPalsucks.com for more information.
However, As outlined by a new report, Merchant failures from fraud on
PayPal are now only 0. 17% of revenues, vs . – 8% for online
sellers that accept credit cards by way of merchant accounts.
This gives condition reason to use PayPal.
If you are facing problems with having a merchant account because you’re not located in the US, WorldPay could be the solution for you. WorldPay is a one-stop solution for the
merchant account, payment gateway, and storefront. The transaction
option includes fraud safety and risk management
programs to safeguard your business. Based in Britain,
WorldPay is a division of Regal Bank of Scotland.
Price: If you compare it with PayPal, WorldPay’s fees are pretty
rigid. 50 US$ monthly charge. 400 US$ setup charge. Transaction Fees
are several. 25% + $0. forty-five US$. The charge intended for multicurrency processing is
your five. 25% per transaction.
2checkout. Com works as an online distribution center. Any time
customer buys a product through your website through 2checkout, anyone
makes your sale for you to 2checkout for immediate secondhand to your
customer. Customers are generally billed by 2checkout, not necessarily you. 2checkout
accepts providers from virtually all over the world. Also, you can
set up recurring billing by way of 2checkout.
Cost: No month-to-month fee. 49 US$ set up fee. Transaction Fee:
Five. 5% + $0. thirty US$.
For marketing e-books, reports, and other comparable digital products,
ClickBank. com is probably your best option. The great thing about
Clickbank . com has over one hundred thousand affiliates promoting items on the ClickBank market. You instantly tap into a vast potential marketplace by listing your item with ClickBank. ClickBank accepts all major bank cards and
Cost: 40 US$ set up fee. Regarding the percentage of the
commission you pay to your affiliates, the financial transaction fee varies
from minimal payments of 5% plus 0. thirty-three US$ to 7. five percent plus 1 US$.
There are many different third-party processing companies readily available
on the Internet. Two of them value mentioning are
http://moneybookers.com in addition to http://www.ikobo.com.
Since fees range considerably from one solution to a different
one depending on your location, products, and needs, do extensive research before signing up with any of the mentioned providers.