
Shopping over the Internet is pretty commonplace nowadays. However, you don’t need to be a big box store to process payments over the internet – everyone from mom and pop stores to high school entrepreneurs are accepting orders on slick websites, shipping out their products and making money hand over fist.
Accepting credit cards over the Internet is becoming more and more prevalent, as well as easy (compared to accepting personal cheques) and relatively safe (compared to over the phone transactions or money orders.) Showing that Visa or MasterCard logo on your website not only looks more professional, but can influence potential customers to purchase from you – and make them spend more, according to a 2008 study.
If you think you can’t process credit card payments, think again! It’s relatively straightforward to build or use a pre-built shopping cart system on your website. October 17 Media can help you with either, whether you set up your own merchant account or help you through and choose a third party merchant. Each has its pros and cons, so let’s examine these methods.
Third Party Merchant

Perhaps you’re just starting out and don’t really know if your business will work out – you wouldn’t want to invest in credit card machines or large initial fees during your first month of business. A third party processor will take care of taking credit card payments for you – for a small fee. The amount varies, but it’s usually a percentage or a fixed amount. One such popular third party merchant is PayPal which accepts payment all over the world, in 24 currencies. Many small businesses rely on them (e.g., Etsy.com or Ebay sellers) and they even offer some protection to sellers.
Creating a Merchant Account
To create your own merchant account, you’ll have to apply for one at the bank and you’ll find that the requirements differ from bank-to-bank. Banks will probably charge you a high initiation fee, as well as a monthly leasing fee for any equipment.
Why would you want to get your own account? If you’re extra-cautious about security, then having your own merchant account limits the exposure of your customer’s credit card info. In the long run, it may be even cheaper than paying monthly fees to third party processors.
So which one is right for you?
It really depends on your business. If you’re running a small operation, then third party merchants like PayPal, Google Checkout or Amazon Webstore may be sufficient. However, when your business starts to expand, you may want to consider getting your own account. With our expertise and experience in creating custom websites, October 17 Media can help set-up the right account for you. Still have questions? We’d be happy to help! Just drop us a line!
