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April 16, 2001
By
Arlene Martell
Website:
http://www.1st-choice-merchant-accounts.com
>
Choosing an Internet merchant account provider – pros and cons
An Internet merchant account is a special service set up by a merchant account provider to allow a business to accept credit cards online. Many banks do not offer this service to Internet companies and prefer dealing with established retail businesses. When choosing an Internet merchant account provider, there are a number of pros and cons to consider.
Most Internet merchant account providers have an extensive web site in place designed to attract potential merchants. This is usually their main marketing tool. Try to choose a company that outlines all their fees up-front. Some companies will offer a phone number to call but you could be subjected to a high-pressure sales close on the phone.
Much of the money made by the Internet merchant account provider is made when the sale is initiated due to a sizable application fee or selling terminal software. They will charge a percentage of each transaction processed anywhere from 7 to 20% as a commission. There may also be a monthly fee required or minimum-processing fee. One of the other fees that are not often disclosed is the “reserve fund”. It is similar to a deposit in place in case there are any charge backs on your Internet merchant account. If you do sales internationally, you need an Internet merchant account provider who can handle several currencies.
In conclusion, ask for all the details up front so you don’t get any unpleasant surprises. It is important to ask the Internet merchant account provider lots of questions because the fees you pay them will affect the fees you charge your customer. The good news is that having a merchant account is great for sales and far outweighs the challenges you may face getting an Internet merchant account set up.
For
more information on internet merchant account - click here!
> About The Author:Arlene Martell is a successful author and the
publisher of http://www.1st-choice-merchant-accounts.com. A source of Info & Tips for the banking industry featuring articles, comparisons & reviews of online banking providers & merchant accounts etc. *Webmasters,
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