Merchant Account or Paypal?

A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of payment cards. This is also widely known as payment processing or credit card processing. Merchants, or business owners who receive credit card payment for their goods or services, must apply for a merchant account typically through a merchant bank or Merchant Service Provider.

When searching for a merchant account provider make sure not only are they disclosing their best deal, but they are indeed disclosing the material facts. When you shop for your merchant account, see what information they give you without you having to ask about something. Typically all they quote you is a rate, transaction fee and monthly fee.

Deciding when to get your own merchant account for internet sales can be a confusing and expensive venture. In addition to the cost is the technical aspect of setting up your site to use a shopping cart and real-time processing. Not all gateways, merchant accounts and shopping carts play well together. You must make sure that each can work with each other. Plus be prepared to properly set up your web server to use all this nice technical information the accounts give you.

If you are a larger business or do a lot of sales each month perhaps your own merchant account is the answer for you. It can save you money in the long run. But if you are just starting out with an online business, then a third party merchant may be the answer for you. Third party merchants handle all the background details, pay the monthly fees, assume the risks of fraud and charge backs, and handle all the secure shopping your customers will expect when shopping online. While the monthly fees may be a bit higher, there usually isn't a set up charge, gateway fees, SSL charges and shopping cart set up.

Depending on the service you choose, they can give you simple HTML code to add to your site or allow you to use "buy buttons" or both. Some companies charge a set up fee and a per transaction fee. Then there is always Paypal. A useful service for new comers to the online payment arena but it has its drawbacks. Your customer must set up an account with them. They can freeze your account. They can set limits on monthly transactions.

I suggest you explore all your options and decide what is best for you financially and technically. A little research online can save you money and time in the long run.