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Accept Credit Cards Online without a
Merchant Account
It
is often assumed if you want to accept credit cards on your website that
you must have a merchant account. This is not the case. You can accept
credit cards with a Third Party credit card processor.
1)
What is a Third Party Credit Card Processor?
A
Third Party credit card processor is a company that will accept credit
card payments on behalf of you or your company. The payments your
customers make are processed through the Third Party's own merchant
account, and you the retailer is paid (minus a commission fee) by the
Third Party processor.
No
need to pay for expensive processing software, monthly fees or minimum
transaction fees. As you only pay a percentage fee on a sale, you cannot
lose money.
2)
Should I have a Merchant Account or Third Party Processor?
For
most businesses this decision will be made according to the size of the
company. Most small businesses do not need their own merchant account.
Small businesses are better off with a Third Party processor. The
advantage is that when you sell your products, the Third Party processor
takes care of the payment by checking the card, processing it, and
sending you a monthly check.
Larger businesses with a bigger turnover are likely to need a full
merchant account. You will pay a bigger set-up fee for an online
merchant account but pay less per transaction than with a Third Party
processor. So recouping your initial outlay.
So
there it is, unless you have a large business it is possible to accept
credit cards online with a Third Party processor.
This article is the property of
www.bestcreditcardsonline.com,
which has been offering credit cards services since 2002.
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