How to Accept Credit Cards Online By David Goodale

You may have already discovered there are more steps to running a successful online business than some would have you think. Selling online is a process that does not happen by accident. You must work to drive traffic to your website. With traffic you must then capture your visitors attention. Once you have the attention of your visitor you must generate interest and create desire for your product. With these steps completed the visitor is qualified, interested and ready to pay. You must now close the sale–immediately!

The problem is that without credit card acceptance you can’t close the sale. Instead, the customer must:

• Record what it is that they want to purchase and
• find the contact information for your company and
• type out their request in a detailed email or
• call you to order the desired goods or services over the phone or
• write a check, find an envelope & stamp, and walk to the mailbox.

Although it may not sound like much work, your customers will be very unlikely to go through the above steps unless they are desperately in need of your product or service and there is no other source or supplier for it within easy reach.

To put it simply, you are jeopardizing your sale.

When you have a customer ready to buy you must strike while the iron is hot. By not doing so you will lose almost all of your impulse purchases, and even otherwise dedicated customers may become too frustrated to complete the process. The proper solution is to accept credit card payments online. In order to do so you will require a merchant account for your business. A merchant account is a bank account used to hold funds captured from credit card sales.

Merchant Account Fees

With the understanding that you will require a merchant account in order to collect payment online, you must do some research and select your merchant account provider.

This is an important choice and will make an impact on your business. Before choosing your provider you must make certain you understand the pricing quote you receive and make sure there are no hidden charges. It is unfortunate, but some merchant account providers try to sneak hidden charges into their contracts. There are also different methods of pricing that can be confusing to business owners, especially if you’ve not accepted credit cards previously. If you see a deal that looks too good to be true, then it probably is. The “typical” charges you may see can include:

• application fee (for the privilege of applying for the online merchant account)
• setup fee (a one-time charge to get your account going)
• monthly fee (an ongoing charge to keep your account open)
• discount rate (the % per transaction you pay)
• non qualified rate (additional surcharge for corporate & rewards credit cards)
• per-transaction fee (a set amount added to the discount rate)
• statement fee (a charge for receiving your statement each month)
• monthly minimums (an extra charge if you do not reach a certain sales amount each month)
• gateway fee (a separate, monthly charge for payment processing)
• minimum term contracts that you cannot cancel without penalties
• chargeback fee (occurs when a customer disputes a charge by going directly to their card issuing bank to have a transaction reversed)
• rolling reserves (money “held back” from your account each month)

As you can tell, with all those different fees it can be very confusing–and expensive–to get a merchant account and accept credit cards on your website. The best way to avoid any hidden or unexpected fees is to do your research and don’t be afraid to ask questions upfront. Make certain you understand your pricing quotation before signing the contract.

Questions to Ask Before Accepting Credit Cards Through Any Merchant Account

When searching to find the company that is best suited to provide a merchant account for your business, you must be sure to ask the right questions. Below you will find a list of critical questions you must ask when researching to find your merchant provider, along with a listing of ideal answers to look for when considering a merchant account provider (These answers also apply to merchant accounts through my company, Merchant Accounts.ca, where you can find more on our FAQ page).

Q) Are there any hidden charges or fees?
A) There are no hidden charges or fees.

Q) Do you charge a higher discount rate for non-qualified transactions involving corporate, reward of foreign credit cards?
A) We are one of the few processors that provide our clients with a blended rate that does not fluctuate. You receive the same discount rate for every transaction. We have the ability to do a qualified / non-qualified quote for clients that prefer that pricing model, but we recommend going with a blended rate as it gives you complete control over your processing costs.

Q) Is the payment gateway included?
A) Yes, the real time payment gateway is included.

Q) Are transactions approved in real time?
A) Yes, transactions are processed and approved in real time.

Q) Is U.S. or Canadian incorporation required?
A) Any type of legal business entity can be approved including proprietorships, corporations, partnerships, and non-profit organizations. All that you need is a business bank account in the country in which your business is located. We provide accounts not just to North American businesses but globally with clients in the UK, Australia, Japan and around the world.

Q) What currencies can I accept payment in?
A) Payments can be processed in the currency or currencies of your choice from around the world.

Q) How long does it take to be approved?
A) 5 business days.

Q) What is involved in the application process?
A) The application process is broken down to two steps. There is an online application which will help us to determine if your application can be approved. (There is no risk to apply as any decline results in a full refund of the setup fee). After the online application you will receive the offline documents which have to be completed, signed and faxed back to us.

Q) Is there anything else needed?
A) No, there is nothing else required. We do not require business plans or any complicated paperwork.

Q) How long is money from transactions held back?
A) Remittance is made on a weekly basis directly into the bank account of your choice, with a one week delay from the date the transaction is processed. Merchants that have established a processing history can receive a faster funding schedule.

Q) Where can I find a detailed pricing information?
A) On our website found here.

By asking and receiving answers for these questions, you establish the basis for a long-standing relationship with a quality merchant account provider.

About the Author

David Goodale is CEO at Merchant Accounts.ca and an industry expert with over 10 years experience specializing in online commerce. He has personally helped hundreds of Canadian, U.S. and international-based businesses implement secure online credit card transactions for their websites. For more information visit Merchant Accounts.ca.