The holidays are full of family, friends, turkey—and shopping. It is truly the most wonderful and economically sound time of the year, which is why it is important to invest in internet credit card processing prior to the major holidays. You want to be sure that your customers can easily buy their family and friends gifts around the holiday season, and they will certainly appreciate the effort you go through to make sure that their holidays are stress-free—at least on the shopping end.
Who Should Consider Setting Up a Merchant Account
If your online business is bringing in more than $20,000 per month, you should definitely consider setting up internet credit card processing. At that level of sales, discounts will begin, and internet credit card processing equals savings for your company. Prior to setting up a merchant account, you should look at the costs. Read all of the small print for extra charges so that you can calculate and compare pricing. Sometimes internet credit card processing services do not deliver on their promises, so be smart about doing your own research before you sign a contract with any company.
With ecommerce companies, investing in internet credit card processing is a great idea. It is the fastest, easiest, and most convenient way for your clients to pay for their purchases. Be sure you choose a processing service that is secure and verified with a SSL Checker. That way, you know that your company is safe, and that your customers are as well.
What to Keep in Mind
It is important to keep in mind that, as a merchant account holder, your provider may elect to create a reserve account for your incoming funds. These reserves could be based on the type of merchandise you sell or your chargeback history, or come about simply because your provider chooses to have them. Sometimes, as much as twenty percent of incoming funds are held in reserve.
If you are wondering where to go for a merchant account, the best place to start would probably be your own bank. Most banks do offer merchant accounts, even the small ones. Your own bank will know you, your credit history, and your business reputation so they will have a stake in the success of your business. If you do not have good credit, try building it before applying for a merchant account.
If your bank does not offer merchant accounts for an ecommerce company, consider finding a broker to evaluate your credit history and get you situated with a bank that will fit your business. The brokers make their money from your application fee, a finder’s fee from the bank you elect, or both.
After you secure your bank, you will be attached to a processor, otherwise known as a transaction clearinghouse. Your bank handles the banking, but the clearinghouse is on the other end of your internet connection when you are processing transactions. It checks whether the credit card used is valid. The final step is setting up the gateway, which is the software with which you transmit charges to the clearinghouse; some use HTML websites and take transactions directly.
Setting up your internet payment system before the holidays may seem to be adding to your stress plate, but it really isn’t too difficult, and is definitely a valuable tool for your business. Contact Allied Wallet today to find out how we can help you start the process.