If you operate a business via the Internet then purchasing an Internet merchant account will need to be the route to take. Setup and purchase costs have drastically fallen over the years. You can expect to pay $0-$150, on a real-time processing solution for your Internet business. Processing rates and fees for an Internet merchant account have decreased as well. Discount rates range from 2.15% to 2.59%. And transaction fees range from $0.25 to $0.35 cents on average. Many places charge a monthly gateway fee as well; This usually ranges from $10-$20/month. However, if you search hard enough you’ll find a company who doesn’t charge a lot of the typical monthly fees you see out there.
Why are processing rates higher for an Internet merchant account? It all goes back to the fact that the customer’s credit card is not actually swiped through a terminal, like in retail storefronts. Since this is the case, it is believed that there is a higher risk of fraud, hence the reason for higher processing rates.
With an Internet merchant account you’ll want to make sure that your order form uses the latest in SSL (Secure Socket Layer), or commonly called a Secure Certificate. These can be purchased from Thawte, GeoTrust or Comodo for a little over $100/year. They are essential if you are serious about making sales online. No one wants to put their credit card information on an insecure order form.
Some internal links that might be of interest that focuses on an Internet merchant account:
- Merchant accounts guide
- Credit card processing guide
- Payment processing articles
- Merchant account FAQ
If you’re interested in a personal recommendation, View our page on the NexCommerce Online Merchant Account Solution for an Internet merchant account for your business.