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 application fee.

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 statement fees.

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.