Internet merchant accounts can be harder to obtain. This is because of increased security risks as no signatures are involved, nor is a card physically presented at the point of sale. Another option may be to use a third party processor, which is basically a payment gateway and merchant account rolled into one. A third party credit card processor is a company that accepts credit card orders on behalf of other online businesses.
If you are a new business with an untested product range, consider using a third party credit card processor while you test the waters, which will incorporate a payment gateway with a merchant account.
Many of these services will also incorporate a shopping cart application as part of the deal (see links at the end of this article) These services may appear to cost more, but they can save you from expensive long term contracts and initial outlay on shopping cart applications.
If you intend using a third party credit card processor that combines gateway services with a merchant account, added to the points already mentioned, ensure you also check on monthly gateway fees, AVS costs, and any other added fraud protection you wish to implement.
Rushed decisions in choosing your ecommerce applications, elements and third party services will dramatically increase the likelihood of your business failure. This is definitely an area where if you spend the time fully investigating all the options open to you - you'll reap the rewards after implementation.
It is worthwhile considering contracting the services of an ecommerce consultant to assist you in making these crucial decisions. The fees you pay to a consultant will be returned in increased profits - and less stress.
Top rated third party credit card processor is 2checkout
- $49 one time signup fee
- $0.45 per Sale
- 5.5% of Sale Amount
- 30 Day money back guarantee
- No application fees
- No monthly fees
- No statement fees
- No leases
- No SSL certificate to buy
- No fees for ACH deposits to U.S. or participating Canadian bank accounts
- Check Payment or Low Cost Wire to Non U.S. Bank Accounts
- FREE shopping cart
- FREE code for your web site
- FREE on-line tech support why 2checkout
- No waiting weeks (Getting started immediately)
- No term contracts
- No equipment or software needed
- Easy to use plug-n-play code
- Simple commission fee structure
- International suppliers accepted
- List products & services just about anything
- Supports recurring billing
- Works with existing shopping carts
- Authomatic purchase order notification
- State of the Art fraud detection
- Great for simple or complex needs
- Comprehensive account management tools
- Robust shipping options
Third Party Credit Card Processors Can't afford a merchant account right now? Check out these 3rd party credit card processing companies.
Instead of paying transaction fees, monthly statement fees, etc., they take a percentage of your products cost (usually 3% to 15%). 3rd party processing is a great option for Non-US businesses.
where obtaining a merchant account is much too expensive or hard to get. BEWARE: This type of solution is good for businesses just starting out that don't have the money to purchase a merchant account right off the bat, but you will pay more in the long run.
It is recommended that once you do have the funds to support a merchant account that you purchase one. It is unwise to set up a merchant account/gateway if you anticipate gross revenues under $650 per month .
Beyond $650 in revenues per month, a merchant account/gateway option begins to become cost effective compared to the alternatives CCNow, ClickBank and DigiBuy are suitable only for products that have a fairly high mark-up that can absorb the substantial purchase costs of 8% to 14%. But this analysis only examines direct purchase costs.
The hidden costs are in time and ease-of-use. Observe that: Several of the service bureaus don't remit receipts immediately to the merchant There is a delay of several weeks.
None of the service bureau solutions nor PayPal allow the merchant access to the customer's credit card number.
PayPal's shopping cart is pretty rudimentary, figuring shipping only crudely and taxes not at all.
DigiBuy provides a sophisticated digital download and registration system, but takes about 14% -- a significant chunk of the total sales price .
CCNow's shopping cart is better than PayPal's, but their shipping calculation is crude Since they are a Delaware corporation, state sales tax need not be calculated.
ClickBank has no shopping cart at all. An affiliate program is included in ClickBank, possible with DigiBuy and CCNow, and totally frustrated by PayPal.
Other third party credit card processors :
PayPal Paypal is flexible enough to serve as a complete billing solution. It provides a variety of E-commerce solutions that can be integrated into your Web site in a few easy steps.
For example, a simple “purchase button” can be placed on your Web site. Once a visitor decides to make a purchase, all they have to do is click on the button and submit their information. That button sends the request to PayPal's back end where it processes the entire transaction for you. And if your business sells multiple products and services, PayPal can even provide you with a shopping cart solution free of charge.
clickbank To use ClickBank you must:
Agree to sell us access to your digital product. Place a "Buy It At ClickBank" button on your web site. Offer detailed technical support pages for your product at your web site.
You can set the suggested retail price for your product. Each time we sell your product, we pay you (and the affiliate, if any) that retail price less $1 + 7.5%. ClickBank has a one-time $49.95 activation fee, and no monthly fees.
ClickBank only lists specific types of products. All products must be:
Deliverable entirely over the internet via web pages, downloadable files, or email.
Deliverable to every customer within 24 hours of purchase.
Backed by a valid customer support email address, to which paying customers and ClickBank staff can send inquiries and receive a human (non-automated) reply by the end of the following business day.
Backed by appropriate technical support pages, written in English, and hosted at your own web site.
Fully compliant with US law, including FTC Advertising Rules and Disclosure Rules Digibuy Digibuy is an electronic commerce solution for publishers of software, shareware, electronic art, information, and data.
Using DigiBuy's turnkey service, you can quickly and inexpensively build a secure storefront to merchandise your products, take orders online, process payments, and distribute digital products over the Internet.
Take a look at DigiBuy's features We also offer a service for college students and faculty looking to start their own digital business.
DigiBuy University is free to students and faculty.
Ibill Don't Have An Internet Merchant Account?
iBill Complete: As your merchant, iBill handles all banking, risk management, affiliate management and customer service issues for clients selling products and services on the Internet.
In addition, iBill Complete offers the most comprehensive payment options on the web, including credit cards, online checks, and telephone billing.
Already Have or Want an Internet Merchant Account? iBill Processing Plus : Serves the needs of merchants who manage their business with an individual Internet merchant account handling their own customer service.
iBill provides transaction processing, fraud control, business reporting tools, subscription capability, shopping cart functionality, and affiliate management.
ccnow Are you an independent business with great products to sell? Let CCNow assist you in selling online so that you have the time to manage the rest of your business. CCNow is the perfect low cost solution to selling your products online. Learn how CCNow helps business find customers online.