An account with a financial institution or a bank which permits businessman to take payments from customers through the credit card mode via the net is known as an Internet Merchant Account Provider. The most important component of the system is the Payment Gateway which transmits the important information, to process the credit card payment, to the provider of the Internet Merchant Account. However, most of the local banks don’t offer the “Internet Merchant Account” facility.

There are several reasons for financial institutions and local banks not to provide internet merchant accounts. One important reason is that transactions through the net are completely opposite unlike the face – to – face transactions that require the customer to sign the receipt to approve a purchase. Therefore, there is a high probability of a credit card fraud in online transactions. For this reason, while you are deciding on the provider of a merchant account you should give first priority to fraud protection so that both you and your customers will be protected.

Since this facility requires more complex technology the first question on your mind would be: What is the cost of this account? To comprehend the cost of your provider can be difficult. Typically, an internet or an online merchant account will have some fixed costs.

Most of the providers of the internet merchant accounts charge a nominal fee for the application. The purpose of this fee is to cover the expenses for the processing of the application. Suppose, later you decide not to go ahead with the plan of opening an “Internet Merchant Account”, then you will not be refunded with the fees. However, there are few providers who do not charge this fee and is highly recommended that you choose an account provider who waives of this application fee.

Most of the providers of internet merchant accounts charge a “Statement Fee” or a monthly fee. This is just another way to cover expenses and make money. It is highly difficult to find good merchant account providers who waive of this kind of fees.

Then, we have the discount rate, which ranges from two to four percent. This is really a sales commission which the provider will earn on each sale. For example, if the rate is three percent and there is a sale of $10 on your website, then you owe thirty cents to your merchant account provider.

There is also a “Fixed Transaction Fee” for each transaction that you make. It ranges from $0.20 to $0.30. It is a portion of each sale. Unlike the discount rate, this fee is constant for every sale you make, whether it is $5 or $50.

Then, there is something called as the termination fee which applies to you if you want to terminate your merchant account within a specific period that ranges from a year to three years. If your client requests you a refund, then the provider will charge you another fee.

Before choosing an Internet Merchant Account Provider you should do enough research to get yourself the best deal.

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.