Best Way To Accept Credit Card Payments – 3rd Party vs. Merchant Account
Having a credit card is a big advantage for most shoppers. It provides an ever ready good opportunity to purchase a product or claim a certain service and not pay cash - at least until the end of the month. It is also the payment standard a shopper has when buying online.
For you as a merchant, accepting credit card payments expands your possible customer base by leaps and bounds..
The most immediate benefit of accepting charge card payments is for impulse buyers. When your marketing is spot on customers immediately fall in love and buy your products in the moment, as you have shown them they ‘gotta have it’.
Accepting payments by credit card will allow easy purchasing of the product and ensure you don’t miss out on possible sales opportunities. Click http://www.ratecreditcardprocessing.com/accept-payments-3rd-party-vs-merchantaccount to find the Best Way To Accept Credit Card Payments.
To begin accepting credit card payments for your business you will need to start a relationship with a merchant account provider or intermediary that allows for secure transaction processing.
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Merchant Accounts vs. 3rd Party Processing – Drawbacks and Advantages Explained
So what exactly is a merchant account and how will it help you in your business? Merchant account is a bank account established to act as the gateway for card transactions. Many banks and providers offer merchant account services and having one allows for your credit card processing system to function and fund seamlessly.
Another option for credit card acceptance is through the use of a third party. 3rd party payment gateways are used to accept credit card payments in exchange of percentages and additional fees.
With a 3rd party system you can reduce some of the costs of a traditional merchant account and offload some of the liability as well.
Many small businesses opt for 3rd party solutions to allow for credit card acceptance. Services such as paypal, alertpay, and others are examples of 3rd party payment processing services.
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Essentially, using a third party merchant can be most advantageous for businesses are just starting and don’t yet have the sales volume to justify a full merchant account.
One drawback for this method, however, is that percentages asked by third parties are higher, and some 3rd party providers do not allow for as seamless integration as is possible with a merchant account solution.
Opening and setting up your own merchant account, despite the higher initial fee, can provide a long term cost savings, most especially as your sales volume climbs, and is advisable small to large businesses to use if they intend to have a permanent shop and will be using credit card payments for a very long time in a high volume or high cost per transaction industry.
Whether you choose a 3rd party payment option or a merchant account you must face the question of security. It is normal and natural for any consumer to have second thoughts in using credit cards as a mode of transaction, especially if the nature of your business is done online.
There are simply a lot of opportunists who have given consumers good reason to be wary of using credit cards in an insecure manner.
It is for this reason that you, as a merchant, must use necessary measures of tightening your transaction security in order to help assure your potential clients that their payment details shall be kept safe and confidential. 3
3rd party payment acceptance services provide for secure transmissions, if you can trust the provider, ultimately your customers will hold you responsible for any breaches of information privacy.
An in house merchant account on the other hand allows for you to take security of your customer transactions under your own responsibility allowing you to take extra measures to provide confidence to your customers that their transaction information is secure.
Consider this carefully when choosing which type of service to use for your business.
Let Your Business Needs Decide
Ultimately, the service you choose to accept credit card payments should empower your business, expand your customer base, and grow your sales.
Avoid unnecessary hassles and time wasting features that do not add directly to your bottom line.
Our recommendation is to seek the best value provider offering a system that most completely customizes to your business needs and keep your focus and time on growing your business and the value you provide your customers.
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Whether you are simply doing a garage sale, starting an online shop, starting an offline business, or looking to grow your firm, choosing the best processing method from the start will ensure a hassle free experience.
To continue reading the rest of the article and find out our recommendations, please click here: http://www.ratecreditcardprocessing.com
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