Take Payments Online

The ability to take payments online can be a really important one for internet entrepreneurs, retail businesses, government offices, subscriptions services, and more. There are a few options on how to set your business up to take payments online, and you will need to determine which approach will work best for your specific needs.

One of the most common methods for businesses that need to take payments online is to open a merchant account. There are other options available, so it may be worthwhile to take a look into those choices, too.

Take Payments Online with a Merchant Account

Having a merchant account with which to take payments online can be the step that takes your business to the next level. In order to do this, you will work with a bank to acquire a line of credit. This allows you to accept credit card payments through your website.

There are several benefits to using a merchant account. For one thing, many consumers feel comfortable using their credit cards online. It has become a very common practice, due mostly to how convenient it is. Additionally, many credit card providers offer various types of purchase protection to their customers. Finally, credit cards allow consumers to buy immediately. This can be especially helpful where online businesses are concerned. Having a merchant account can mean the difference between being able to have a business or not.

Pros and Cons of a Merchant Account

When making a decision about the best way to take payments online, it can be helpful to look at the pros and cons side by side.

Pros:

• Customers find merchant accounts to be very convenient
• There is little to no wait for authorization
• Sales can be made directly from the site
• Much of the paperwork is handled for you

Cons:

• There are several related fees that come with a merchant account
• Credit card numbers input into your site could theoretically be hacked and stolen
• Merchants may have to deal directly with customers in cases of fraud and disputes

Utilizing a Third Party Processor to Take Payments Online

Third-party online payment processors are often used for a couple of reasons. In many cases, they simply offer an alternative method of payment for consumers who want to spend money on your website. These services may have the benefit of name recognition, which makes customers feel comfortable making an online transaction. They can also be beneficial to businesses that can not qualify for their own merchant accounts or that simply do not want to spend the money necessary to open a merchant account.