What is an Internet Merchant Account?
Internet Merchant accounts provide you with a method of accepting credit card payments through your web site.
How do I get an Internet Merchant Account?
To accept digital web site payments merchants must establish three relationships between the customer’s payment and their company bank account
Step 1 - Web Page Controls - Regardless of which merchant provider and gateway service you choose, your web site will need to integrate eCommerce web page controls. The minimum controls required include a shopping cart and payment processor software to communicate with your payment gateway most businesses opt for special store front software to add to their main web site.
Step 2 - Payment Gateway – provides a digital method that is used to transmit and process a customer's order. The process uses customer billing information (credit card number, credit card type, expiration date, payment amount) and performs necessary validation before the credit card is billed and payment delivered to the merchant.
Step 3 - Merchant Account - A Merchant Account is a commercial / business account with a financial institution or bank that enables your business to accept credit card and bank machine payments from clients
How Much Do Internet Merchant Accounts Cost ?
Understanding the total costs of your merchant provider can be confusing. Typically, an internet merchant account will have six types of costs:
- Up Front Application Fees - Many internet merchant accounts will require an up front application fee. This fee, supposedly, is to cover their costs for processing your application. In case you do not qualify they still cover their costs and make a profit.
- On Going Fixed Fee - Most internet merchant providers require a monthly fixed fee or statement charge as it is commonly named or simply another way to cover their costs and increase profit.
- Discount Rate - The discount rate is the sales commission the provider earns on each of your sales.
- Fixed Transaction Fee - The fixed transaction fee is the fixed fee portion of each sale. Unlike the discount rate, the fixed transaction fee is the same for every transaction.
- Termination Fees - A termination fee can apply if you cancel your merchant account within a specified period of time
- Miscellaneous Fees - If a customer requests a refund and they want their credit card credited, an internet merchant provider will charge you a separate fee. Read your contract carefully the small print will contain more small fees.
Before you choose an eCommerce solution and internet merchant account provider for your business understand all of the cost components and learn all of your options. Choosing wisely will save you time and money. For even more security for your customers you can inform them that they can purchase MasterCard Debit Cards at MoneyMart in Canada with a pre-determined amount on it for internet purchases.