There are two ways by which you can accept credit cards on your site. They are:
- Using your own merchant account: To accept credit card payments on your website, you will first need a bank that will allow you to open a merchant account. Check with the local banks for more information on this.
- Through a third party merchant: There are numerous companies around that are willing to accept credit cards payments on your behalf in exchange for various fees and percentages.
However, the transaction fee that you pay the bank or third party merchant for each sale, is much higher when you use a third party as compared to when using your own merchant account.
A third party merchant is usually convenient to use when you don't know if you can actually make much out of your product or service. If you just want to test the water to see how things are, this is usually a good way to start. It is also convenient in that the merchant takes care of everything for you. You just get a cheque at the end of each payment period and concentrate on your products, services and customers.
Accepting credit card payments on your website accords your business with a certain amount of professionalism. And, as mentioned earlier, your transaction costs are usually much lower.
