HIGH RISK
THIRD PARTY CREDIT CARD PROCESSING
It is difficult for a new business
owner, sometimes even established
business owners, to get an internet or
online merchant account. An online
merchant account is needed to process
payments of customers made through
credit card. A holder of the “internet
merchant account” has to bear the
expenses for several things including
monthly gateway fees, minimum
transaction fees, customer services
fees, credit card processing software
and fees for the secure server, among
several other fees’.
Well, for a start up business all these
costs are not affordable and therefore
the alternative is using “Third Party
Credit Card Processing”. There are firms
called “Third Party Credit Card
Processing Firms” which accept payments
through credit cards on your behalf.
However, the cost or commission charged
for each transaction ranges from three
percent to fifteen percent of the price
of the product. There may be a minor one
– time fee that is charged by the third
party credit card processors for the
setting up of the service. Some third
party credit card processors provide
this service for free. Using this option
is only recommended in the starting or
the first phase of your business when
your have very limited capital and
limited products put up for sale. When
your business is doing well and you have
enough money to fund an “Internet
Merchant Account”, it is advisable to go
for it. You should know that, it is
better for your business to move to an
internet merchant account as soon as
possible because this account offers
several more benefits at a much lesser
price. But, if your turnover is under
the $650 a month mark then it is not
recommended for you to set up a gateway
and an internet merchant account.
To get a “Third Party Credit Card
Processor” you have to sign up by paying
a prescribed fee and get the approval.
Once the approval comes in, you are
allowed to create links for ordering for
the products. These links will connect
the customer with the third party
processor’s servers and then, they will
process the orders for your business.
Some of the ordering options offered by
third party processors include telephone
ordering option, credit cards and online
checks, among others. When a sale is
completed, the product price minus the
processing fees will be transferred to
your business account in a secure
manner. For non – US businesses, 3rd
Party Processing, is a good option. But
if your turnover goes over $650 a month,
then the merchant account will be a much
better option.
It is a wise step to seek the opinion of
e – commerce business specialist prior
to taking a decision on the use of e –
commerce for your company. However, once
you have decided to use e – commerce for
your business, then having a way to
accept credit card payments is a must.
If you do not provide to credit card
payments on your website then your
customers will quickly move to a
competitor’s site which provides better
payment options.
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. |