Top 7 Reasons To Open Your Own Merchant Account
By Jimsun Lui
[ Print | Email This | Bookmark ]
It's true that the number of business orders increases if you can accept credit card payment online. The reason is that online buyers are usually impulse buyers and credit card payment provides a convenient means for them to buy. To accept credit card payment online, you either open your own merchant account or use a third party online payment service provider. If you use a third party provider, you have no need to use your own merchant account.
However, I recommend you opening your own merchant account rather than using a third party online payment service provider like paypal because of the following reasons:
- If you don't have your own merchant account, you could not take credit card orders via phone, fax, or mail order. The customer has to input their credit card information 100% online, and it's illegal for you to input the credit card information of a customer yourself if you don't have your own merchant account. Still, many customers are not confident of disclosing their credit card information online. Thus, you lose many customers.
- You have to wait up to one month to get your money. If you have your own merchant account, you get the money within several days via electronic transfer.
- When customers get their credit card bills, they see "the third party online payment service provider" as the merchant and not your company. This will cause people to charge back their orders and you will lose money!
- The fees of third party online payment service providers are usually between eight and 15%. These fees add up over time and you can save a lot of money by getting your own merchant account instead.
- Your own merchant account also gives you more credibility, much like having your own domain name. People think that you are a serious merchant. As a result, you get more orders.
- You take less risk by having your own merchant accounts. If your third party online merchant payment provider closes his/her business, you may suffer a great loss. In general, the chance for an Internet company to go bankrupt is higher than a bank.
- Some third party online payment service providers need your customers to register as their users. This action drives your customers away and you lose money.
Conclusion: In the long run, opening your own merchant account is a plus to your business.
By Jimsun Lui of Addto! e-Commerce Directory The site collects & refers various kinds of business solutions and offer FREE advice to small businesses and webmasters. Visit [http://www.addto.com] now!
If you want to open your merchant account now, Click [http://www.addto.com/track/ecomx] to learn more.
Article Submitted On: September 26, 2000