Opening an Online Merchant Account

Online merchant accounts are very useful for merchants. By opening an online merchant account, a merchant gets an opportunity to accept credit card payments from buyers using online payment mechanisms. This type of online account helps transfer the amount of money a customer pays for a certain service or product to the bank account that an online merchant owns.

With more and more businessmen, running online service companies and stores, opening an online merchant account has become a necessity. Regardless of the business status and size, an online merchant account is here to make things easier and faster for everyone.

An online merchant account helps you avoid making numerous calls to customers in order  to discuss paying details. It also helps reduce time-consuming paperwork you have to do, when signing papers in order to make transactions legitimate. Moreover, there will be no need to update database every time you make a new sale.

An online merchant account has a number of features that make the process of running online business more easy and effective. Its multi-currency payment option facilitates transactions with customers all around the world. You customers’ geographical location and type of currency they use do not matter if you have an online merchant account. The process of sending and getting money is quite simple: using a virtual terminal, customers simply connect to your online account and enter their credit card data.

An online merchant account can be opened in two ways. The easiest way to do this is to open a third party online merchant account. This will cost you about $50, but the processing charges can be very high. You can choose this way if you are a novice in the online business world, but once you business grows it is better opening your own online merchant account.

To be eligible for opening your own online account, you need to meet certain requirements. You first of all, must have a well-established bank account, good rating of your credit, as well as high rate of fixed income. To open your own online merchant account, you will have to pay about $500. Though this fee seems pretty high, you will be not charged any additional procession fees for making transactions.

It is quite evident that a number of transactions will increase with the enhancement of your business and consequently the option of using a third party merchant account will cost you more than owning your own merchant account.

An online merchant account can be opened through any bank, offering this kind of service, or through one of the existent merchant service providers. When opening an online merchant account one must remember that banks have strict demands to their applicants and usually refuse this service to businessmen with no or little experience on marketing history.

If you are just starting your online business, it is better to find an online merchant service provider, as contrary to banks they are eager to provide services to beginners. The fee they charge for transaction is usually not higher than 0.30 dollars. It is also advisable to deal with independent sales companies that offer the same services.