Accepting online payments is the cornerstone of conducting business through your web site. If you can sell your products or let customers book your services online, online payments are a must-have. Here's a quick look at the two essential pieces of online payments: an e-commerce web site and a merchant account.

E-commerce web site

To accept online payments, you need a web site that's capable of e-commerce: collecting orders, shipping and billing information, and processing credit cards. More involved e-commerce systems can include all kinds of extras for managing SKUs and inventory, reporting on sales and revenues, handling coupons, gift cards, and gift certificates, and calculating tax and shipping charges.

You can get a basic store by signing up with an online provider, but for the most control and customization, it's best to hire an e-commerce developer who will work with you to create exactly the site you want. E-commerce providers can also add e-commerce functionality to your existing web site.

Merchant account

The second half of setting up your web site for online payments is connecting your e-commerce system to a credit card merchant account. This process varies depending on whether you already have a merchant account or not.

If you already have a merchant account because you accept credit cards in your store or over the phone, it should be pretty straightforward for your e-commerce provider to use that account.

Be wary of e-commerce vendors who insist that you use their merchant account provider: you won't be able to negotiate a better deal if you're tied to a single merchant account. Robust e-commerce software can work with any merchant account.

If you need a merchant account, you'll have to make that part of your online payment project. Choosing a merchant account provider can be a bit of a challenge: there are some shady players in the credit card industry. Do a thorough investigation of several providers before making a final choice.

Merchant account services carry several different fees. The discount rate is a small percentage of each transaction, while the per-transaction fees are a flat rate applied to every charge. The bigger your average sale, the more important the discount rate is, so if you sell big-ticket items you'll want to make sure that's as low as possible.

The discount rate can vary for online payments, mail order/telephone order (MOTO) charges, and in-person transactions. Often, the rate for online payments is higher, due to a larger perceived risk of chargebacks or fraud. Look for a merchant account provider with good experience handling online payments and you may be able to get a more favorable rate.

Ready to add online payments to your web site?

Some e-commerce vendors can connect you with more than one merchant account provider, and some merchant accounts offer plug-in e-commerce modules for your web site. Often, though, you'll be better off selecting two companies who are each experts in their respective fields. BuyerZone can help.

Submit a free request for e-commerce price quotes and we can connect you with leading online payment services who want your business. Or, try a free request for credit card processing price quotes and you'll be put in touch with several reputable merchant account providers.

Better yet – do both. It's free, and you'll have highly qualified online payment vendors competing for your business.