Benefits of the Paid online account over
the free OFFSHORE merchant account
The “Online Merchant
Account” is a special account, in a
bank, which allows the account holder or
merchant to accept payments through
debit card or credit card from his
customers over the net. With most of the
businesses now going online to expand
their business, the need of having an
“Online Merchant Account” to accept
payments for online transactions is
becoming a necessity now, not a luxury
like it was seen before.
The most important factor
which is considered by every merchant
while choosing his service provider is
the rates and fees of the merchant
account. All merchants are concerned
about the overall costs or the effective
rates of the merchant account. These
costs are mostly different for each
provider and are mostly high for an
“Online Merchant Account”. This is the
reason why many online companies are
nervous about it. The service providers
and the banks also want to increase or
expand their business and therefore,
come up with new strategies. One of
their new strategies includes the
providing of “Free Merchant Accounts” to
their customers. Therefore, it is better
for you to understand how the free
merchant account differs from the paid
merchant account.
With the free merchant
account, the service provider does not
charge any membership fees or setup fees
from the merchant for the merchant
account. This implies that the merchant
will not have to pay to get registered
with the provider and he also receives
the payment gateway and set up guide
information for free. There is a myth in
the market that free merchant accounts
are always better than the paid ones.
This is not absolutely true and also not
totally false. Each of the accounts has
its own disadvantages and advantages. It
is for you to understand these points
and decide which one is the best for
your business.
There are no free cups of
tea, in this world and more so in the
business world. If a bank or a service
provider is giving you something for
free then they will make for it by
charging more in another place. This
applies even for Free Merchant Accounts.
Though you will be happy that you don’t
have to pay any money in the beginning,
you will have to shell out more money
every month as processing fees and other
rates. This is done to compensate for
the no registration and set up fee.
However, with a paid
merchant account your fees and rates
will be much lower and therefore, your
monthly bill for the merchant account
will be much lesser. For example, there
are providers who charge up to $14 for a
$100 transaction with free merchant
accounts but the highest effective rate
with the paid accounts is about 3%,
which is $3 for a $100 transaction.
Hence, it results in higher profits and
savings with a paid account.
Also, the free merchant
account will not have customer care or
technical service from the provider.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account or
offshore merchant account for a
high risk merchant. |