Customers who use the internet to shop are spoiled for choice, so if you don't offer them what they want right away, they will simply go someplace else. They expect different payment methods to be available, but credit cards get the most use because they are so convenient and the money doesn't have to be in a checking account right away. They also generate more revenue from impulse purchases.
Credit cards payments can be accepted by an ecommerce site in two different ways. The prefered way is to use a third-party processor and the later is to establish a merchant account with a bank.
Many banks will offer merchant accounts and processing gateways to their account bearers; the main disadvantage of which being that approval for merchant accounts is much more stringent for internet based businesses than it is for traditional retail.
PayPal and other third party services do away with the need for an account with the merchant. They also offer real time payment and fund transfer into the account of a business owner for a small fee, which is usually a small flat rate plus a percentage of each transaction's sale.
For this purpose PayPal has the most appropriate solutions for using credit cards and the features that they have consist of a shopping cart where the company website can be placed, the ability to interchange international money, and receive various types of payments including debits electronically or echecks.
It is best for the start-up or small business owner to hire the services of PayPal or any other such options available for credit card transactions. With such services available you need not have your merchant account.They charge you some minimal fees and then you can take payment through credit cards from your customers.
About the Author:
Justin Harrison is a leading Internet Marketing consultant responsible for the Internet Marketing strategies behind some of the biggest online brands including Amazon, BBC, MasterCard and many others.
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