INTERNET TOBACCO MERCHANT ACCOUNT PROVIDERS
An account with financial institutions
such as banks which help traders to
accept payments made by their consumers
using credit cards via the internet is
referred to as “internet merchant
account provider”. The most essential
component in of such a system is a
payment gateway that transmits vital
information for processing credit card
payments. The information is sent to the
provider of the online merchant account.
Most local banks do not offer the
facility of an online merchant account.
There are a number of reasons why local
banks and other financial institutions
do not offer internet merchant accounts.
Once reason being, online transactions
are completely different when compared
to face-to-face transactions. In
face-to-face transactions, consumers
will have to sign a receipt so that a
purchase is approved. The probability of
the occurrence of a fraud is very high
in online transactions. Hence, while
choosing a merchant account provider, it
is essential to check whether fraud
protection is provided both to the
traders and their consumers.
Since inline transaction facility
requires complex technologies, it is
very important for you to find out the
cost for this type of account.
Typically, internet or online merchant
accounts are certain fixed costs and
hence it is difficult for traders to
compare the costs of the providers.
Almost all online or internet merchant
account providers charge an application
fee. The reason for collecting
application fees is to cover all the
expenses involved in processing the
application. Suppose a trader decides
change his or her plan of opening an
online merchant account, he/she will not
be refunded with the application fees.
However, there exist some providers who
don’t charge the application fee. It is
advisable that you select such merchant
account providers who waive off the
Almost all the online account providers
charge a monthly fee or statement fee.
This is simply another way to cover
costs and to make a few quick bucks. It
is not very easy to find merchant
account providers who do not charge the
There also exists a fixed transaction
fee for all the transaction that take
place. This fee usually ranges from
$0.20 - $0.30. Unlike the discount fees,
the fixed transaction fees remains
constant for all the sales you make,
irrespective of whether it is a $5 sale
or $30 sale.
There is another fee known as the
“Termination Fees” which is applicable
to a trader only if he or she wants to
terminate the merchant account within a
specified period of time, ranging from 1
to 3 years. If the client requests for a
refund then the merchant account
provider will charge another fee.
Hence, before selecting an internet or
online account provider, it is very
important for traders to carry out
research to get the deal that is best
suitable for their business. Find out
the rates offered by different merchant
account providers before you finalise on
one. With this, you can easily get a
provider who will meet the requirements
of your business.
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.