Accepting credit card orders online is a convenient way of doing business, especially for the consumer. There are online businesses that do not use credit card payments, but bill and accept cashier’s checks or money orders. However, in most cases, this billing process results in the loss of more than half of a site’s potential customers.

The reasons why many businesses do not like to accept credit cards are many and include financial issues such as transaction fees, discount rates, setup, statement and application fees, as well as a minimum monthly fee. Combined, this can take a significant bite out of your potential profit.

If you are developing an ecommerce website, you may discover some ecommerce development sites that offer a merchant account at no cost. Others may charge up to $500 for this type of account. What a merchant account does is allow those credit card orders to be processed.

The merchant account is also required for the implementation of many online shopping carts. The two often work together.

One of the most compelling reasons to pursue a merchant account is to expand the growth potential of your eCommerce website. With a credit card sale, the consumer has a level of assurance that they will either receive their product or not be responsible for the purchase by the credit card company (in many cases). However, with a bill/prepaid plan, the consumer may be wary of providing cash for something they haven’t received. This is especially true when the client is new.

In essence, a billing system could work for existing customers, but to grow, you may need to consider getting a merchant account for ecommerce, and then expand your marketing plan to increase demand for your product. In turn, the growing demand may more than offset the fees associated with credit card transactions.

Some small businesses may use a PayPal account instead of a merchant account to send and receive payments online. Fees are also required in this agreement and some consumers may not like to set up their own PayPal account just to make a payment, but this option may be more acceptable for some online startups or small businesses operating a PayPal corporation. niche.

Knowledge of the available tools provides a certain empowerment. Online searches can lead you to a variety of merchant account providers, but knowing your options can help you manage your business goals and objectives. E-commerce is a big step and the more you know about the options available, the easier it will be to define the solution.