Internet Merchant Account – 7 Important Facts Pertaining to Online Credit Card Processing

On any infomercial oriented towards making a living on the Internet, you very well may hear the host exclaim, “You, too, can make thousands of dollars online with our turnkey, can’t-fail system. You only need to spend a couple of hours a week, follow our instructions, consistently rinse and repeat, and the money will follow – even in your sleep.”

But most serious Internet merchants know that hard work, dedication, and creativity are the prerequisites to online success. In addition, keeping an eye on operation expenses, such as processing-related fees arising from your Internet merchant account, helps to keep a business in the black. So while it’s important to study marketing, search engine optimization, potential product vendors, and other business principles (and avoid infomercial hype), it’s also crucial to gain a firm understanding of what constitutes an Internet merchant account and its relevant costs.

The following basic facts pertaining to “Internet merchant accounts” should bring you up to speed about setting up online credit card processing quickly and cost-effectively:

1. An Internet merchant account provides the means to safely and securely accept credit card payments online via your website. In order to be compliant with card holding association rules, your site should include product/pricing, return and privacy policies, and contact information.

2. You will have to open an Internet merchant account where your selected processor will be able to deposit the funds into your bank account. It will likely be cheaper if your selected provider also offers a payment gateway, such as Authorize.net. (A payment gateway is the conduit that communicates with the banking networks to authorize and settle transactions.) If your processor does not offer a gateway, you will need to buy one separately.

3. You or your web designer / developer will have to integrate or connect this gateway with your website’s shopping cart or order page. Some merchants prefer to use their own secure certificate where the gateway resides on their server. Many other merchants prefer to use the gateway’s server so when customers are ready to input their credit card information, they do so on a page that resides on the gateway’s site.

4. Some business folks set up Internet merchant account systems that may not rely on a real-time processing gateway. They set up what is known as deferred processing, collect the customers’ credit card information (hopefully, in a secure manner) and then key the information later using a virtual terminal or physical terminal. One advantage of deferred processing is that it allows the merchant to more closely examine whether a given transaction looks clean or valid. The disadvantage of this system is that you may be assuming greater responsibility for storing and managing data, increasing your liability should a data breach occur. Most folks opt for real-time credit card processing with a payment gateway.

5. You have to be PCI-compliant, adhering to payment card industry rules and regulations. Ensure that the gateway you’re using is PCI compliant and remember to work with the processor, completing a questionnaire pertaining to how you store, manage, and transmit data.

6. An Internet merchant account has fixed costs (e..g, startup fee, monthly fee, monthly minimum fee, possible termination fee, etc.) and more variable costs, such as discount percentages taken directly out of a transaction. It is vital to know the TOTAL startup and monthly cost. Internet merchant accounts, in particular, may have other fees tacked on such as the gateway startup fee, monthly fee, gateway transaction fee, etc. Try to get acquainted with all associated credit card processing costs and avoid hidden merchant account fees.

7. You may opt to obtain additional value added service from your Internet merchant account provider / gateway partner. For example, Authorize.net offers recurring billing, fraud preventative suite, etc. There are additional fees for such services. On the other hand, at no additional expense, you should be able to obtain a virtual terminal as part of your Internet merchant program.

Now that you know more about an Internet merchant account, you’re ready to make your first million … or at least your first sale.

Do you need to open an Internet merchant account with the lowest rates and highest level of service? Intelli-Collect PowerPay has been offering Internet merchant accounts since 2001 at merchant-friendly rates with concomitant outstanding service.