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Does Your Website Need a Merchant Account?

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Did you know that approximately 90 percent of all web purchases are made using a credit or debit card? Enabling credit and debit cards as forms of online payment can allow your business to reach a whole new group of prospective customers you may not have reached otherwise. Whether you're looking to accept credit card payments locally or global payments from international customers on your website, a merchant account can help you do just that.

Simply put, an internet merchant account is a type of account that allows merchants to accept credit cards as a form of payment; a customer enters their credit card information directly in to your website instead of mailing in or placing orders over the phone. Merchant accounts are typically obtained through a bank, a credit card company or another payment processor. Merchants who want to accept credits cards must have a merchant account to do so. A merchant account specifically for an online merchant utilizes a virtual terminal or payment gateway service to process credit card payments.

Depending on the provider, a merchant account can have a variety of fees, some recurring and others one-time flat fees. Some include interchange fees, which essentially is a percentage that is applied to the dollar value of each transaction to be paid by the merchant. When choosing a provider, make sure you know all the terms of payment and all the fees you will incur before you sign a contract.

Setting up a merchant account in order to accept credit cards can provide a myriad of benefits. First, using credit cards as a form of payment is convenient for consumers (most of them have multiple credit cards) and they are more likely to shop with online retailers who accept them. Next, simply accepting major credit cards can make your company appear bigger and provide customers with the sense of security that comes with shopping with secure, reputable retailers.