Is it possible to have online credit card processing without merchant account?
Is it possible to have online credit card processing without a merchant account?
If you are a business owner or are intending to start your own business, you have probably already realized the importance of credit card transactions. The vast majority of people are no longer doing business using cash, so you absolutely have to be able to provide your customers with the ability to purchase your goods and services through the use of their credit card.
If you are operating a business on the Internet, this is absolutely essential. Very few customers are willing to pay for something by use of a check, simply because the time lag between them placing the order, the check arriving, and their item being sent is far too great for many. People want their items and they want them now!
You Have to Have a Merchant Services Account
While many understand that a business has to accept credit cards, it’s not as easy as simply accepting them. You have to have some kind of processing agent to be able to provide you with the services necessary to record and process the credit card transaction. What this means is that you have to have a merchant service account.
For those who were hoping to bypass this, sad to say you must have one of these kinds of accounts. A merchant service account not only handles the transaction itself but also the middleman between your business and the bank or other financial institution.
However, they do much more than this. They help to ensure that there is a limited potential for fraud, can reverse transactions easily, and assist you in recouping your goods or payment should a fraudulent card be used. What this means is that they act as an additional safety net between you and the customer.
Your Liability for the Service
A business is eligible for these merchant services only after paying certain fees such as application fee, setup fee, transaction fee, monthly fee, and fee for currency conversion. The application and setup fees are paid once by the business to the company that processes Credit Cards. It varies from company to company and in fortunate instances, waived off by the Credit Card processor.
Transaction fee, a very small percentage of sales, is paid whenever a sale happens. It is charged because the merchant services account provider routes the information of a Credit Card via the exchange. This is also charged differently by different providers.
A monthly fee is usually a flat and round amount. It depends upon the tenure, and terms and conditions mentioned in the contract. The longer contracts are charged a lower monthly fee. At last, a currency conversion fee applies if the sale is made in a different currency.
The more transactions you have the higher amount you pay. However, you are likely to find that there will be a small decrease in the per transaction percentage that is charged the more transactions you process each month.
Many businesses accept online payments through PayPal, of course, because of wide reach but then also it is not as attractive as the services offered by some of the merchant account providers. PayPal charges a standard fee for transactions done within a country but in case of international transactions, the fee jumps significantly.
As sad as this is to say, you simply cannot provide your customers with the ability to process their transactions using a credit card and less you have a merchant services account. Fortunately, there are many great businesses out there for you to choose from. Click on this link if you would like to know more about whether online credit card processing is really possible without any merchant account.
Wondering who can give you excellent payment solutions in the United Kingdom? GB Payments is the name you are looking for. They can help you take payments in a smart way that might help your business grow in no time. Visit the official website of GB Payments to know more about their services.