Setting up a merchant account is the first step in providing ecommerce website owners with means to take credit card payments for their businesses. The simplest and fastest way to open a merchant account is by going through an online service. The process usually involves filling out an online form and waiting for an approval or rejection of your application; if it's approved you would be notified by email.
Because merchants are responsible for complying to standards issued by the credit card industry, the first thing they need to do is make sure that their website is PCI compliant. This means that they will have to take certain steps in order to protect the security of customers' financial information. These include encrypting customer's data as it travels across the Internet and requiring authentication from cardholders as they go through the standard checkout process.
While there are plenty of online merchant account services that will set up a merchant account for you, be aware that they may not all provide the same rate. The rates range depending on factors such as transaction volume and type of business. Some of them may provide discounts to customers who meet certain payment processing volume levels. If you are planning on running a large business that will have high transaction volumes, then it's advised that you look for an account that offers lower rates. The website of your online merchant services provider should have the pricing information clearly provided in its website.
Some providers offer the possibility of setting up an account for free in which case they provide the service and then get paid when you receive your payment. The other option is to set up a merchant account by paying either a monthly or setup fee, in which case you would still have to cover the charges from the credit card companies for every transaction that goes through your website.
Another great option available is to find a merchant account that offers you both – free trial and the chance to pay the setup fee. Once your website is set up, if it can't accept credit cards for some reason, then you will have an opportunity to switch providers or cancel your service without any penalties or fees.
In order to make sure that the merchant account you will set up meets all your requirements, do some research first. Check which payment gateways are offered by different providers. Also, don't forget to ask them about rates and fees as well as any other hidden costs that could arise during the process of using their services. If you have plans on selling downloadable products then you may want to find out what payment methods are supported for digital goods.
Following these simple guidelines will help you find the merchant account that best suits your needs. Make sure that you are aware of any fees or costs before signing up, otherwise you could end up with an expensive bill at the end of the month. If it's possible, you should initiate the process of setting up a merchant account by yourself.
