Why a CASINO merchant account is not needed

When a trader has newly started an online business and sells his or her goods or services all by themselves, one thing that will be advised to them is to acquire a merchant account so that business can be done online. However, this is not true. In certain circumstances, merchant accounts are a necessity. But, for a number of online businesses, it will just be an added expense. There are several reasons for this.

Set up fees – A merchant account cost a huge amount for it to be set0up. A few services waive this charge, but a trader will indirectly be hit by the high transaction or monthly fees. If checks need to be accepted online, additional charges need to be paid for this feature too.

Monthly fees – After a merchant account is set up, there is a fee that is charged known as the monthly fees. This could include customer service fee, statement fees, gateway fees, etc. if checks need to be accepted, a trader will be charged for that also.

Transaction fees – If a trader processes the payments via his or her own account, then a percentage of this transaction needs to be paid as additional fees. This fee that is charged is termed as transaction fees. Again, accepting eChecks will incur an additional transaction fee.

Discount fees – A discount fee is a usually a small percentage (usually 2.5%) of a transaction amount.

More accounting – When a trader possesses a merchant account, he/she will have additional accounting responsibilities. Every transaction that takes place needs to be added to the ledger. One can also import and download the total number off transactions into the accounting program. However, keeping a track is still a headache.

Shopping carts and payment gateways – It is required by a trader to either rent of purchase additional software so that the online payments can be processes, especially a shopping cart and payment gateway. Keeping in mind the various charges which come as internet gateway fee, statement fee, transaction, discount fee, application fee, fee for payment gateway license and set-up fee, it is obvious that merchant accounts could get pricey a tad bit inconvenient.

There are several 3rd party credit card and payment processors existing online. These processors process check and credit card payments for a trader and then deposit the funds into their bank accounts or send the check across. A minor fee will be charged for these services. Usually, set up fees are not charged which only adds to the convenience. Moreover, a trader need not worry about shopping carts and payment gateways!

A merchant who has just started an online business should know that it is clearly a waste of money to acquire as well as maintain a merchant account. This holds true only when traders are starting out and have new online businesses and websites. For new online business owners, it is not only a hassle but also a costly affair to open a merchant account. 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.