Credit Card : Best Reviews of 2018
Merchant account is a contract between a business and a bank or a financial institution. This contract ensures that the bank accepts payments for the products or services on behalf of the business. These Credit Card acquiring banks ensures that a merchant or company can accept payment from international customers for the products or services they deliver. Thus merchant accounts form a vital part of any E-commerce business.
There are two types of merchant accounts. First is the normal account, where the Credit Card can directly access the card and ensure that it is a legitimate customer, thereby the risk involved is minimal. The second type of Credit Card involves the accounts where it is not possible to visually testify the customer. These types of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, online gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, or any transaction that takes place with the customer physically not present. Thereby, the possibility of fraud activity is much greater with this type of business which results in classifying these types of accounts as “high risk” ones. Naturally, these high risk merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches that these high risk processing transactions are more susceptible to fraudulent transactions.
Credit Card : Things to Note and Avoid
Selling digital products like ebooks are all the rage these days due to the duel factors that consumers are snapping them up like wildfire and that you as the merchant are able to make almost 100% profit on the deal.
Whereas a $20 product such as a physical book sold in a store may only make the author a dollar or even less in profit, selling the same product online in a digital format will give you $18 or more of profit. It's pretty simple math why so many people are choosing to market their ebooks online, isn't it?!
The question of course from aspiring eBook authors is how to accept credit cards on their website so they can process orders smoothly and then allow their customers to effortlessly download the book they have just purchased.
In this article then we're going to look at 3 popular merchant account providers used by eBook sellers so we can compare the various options and so, I hope, enable you to make an informed decision about the best provider for you.
Paypal and Clickbank are both third party processors which means essentially that you're using someone else's merchant account. The result of this is that you hve less control over your business. As an example, stories are rife on the Internet about Paypal "locking" people's accounts for no obvious reason meaning that they are then unable to access the funds that are legitimately theirs. To me, if someone prevented me from accessing hundreds, even thousands of dollars that are rightfully mine, I'd be pretty angry.
As well as giving your business more control, your own proper merchant account may well work out more cost effective over the long term. They may charge a small monthly fee, but the per-transaction fees can be so much cheaper that you can actually make a considerable saving in lot of cases.
In the end, the decision really is yours. Clickbank for simplicity, Paypal for speed of payment or your own merchant account for flexibility and cost effectiveness.