Accepting Credit Card Payments Online

Accepting credit card payments online is the cornerstone of e-commerce, and the best way to take online payments is to set up a credit card merchant account. A merchant account allows you to accept payments online and have them transferred to directly to your business bank account.

You can get a merchant account from a bank, a business association, or an independent credit card processor. When you apply for a merchant account, the provider will want to verify that you are a legitimate business that won't leave them liable for fraudulent charges. They'll run a basic background check, a credit history review of your owners and officers, and credit references from two to three suppliers.

Once you're approved by a merchant account provider, you'll need to set up your web site to work with their system. Any e-commerce provider should be able to work with the merchant account provider you've chosen - but do make sure to check. You can also start by choosing an e-commerce provider, and they will usually recommend a merchant account provider for you. Be sure you can shop around, though: avoid e-commerce providers that say you have to use their merchant account service.

Online payment without a merchant account

It is also possible to accept online payment over the Internet without establishing your own merchant account. Third party merchants like PayPal or cc:Bill can accept credit cards on your behalf, without requiring a credit check. However they typically batch your money into regularly scheduled payments, negating the advantage of quick turnaround. In addition, their rates tend to be higher - significantly higher, in some cases - than traditional merchant account providers. There's also a business image concern: using one of these services may make your business seem like a small-time operation.