Paying with cash is a rarity. Cashless transactions are quicker and more convenient and vital for shopping online.
The only way ecommerce businesses can thrive is if they accept credit and debit card payments. To do this, you must obtain a merchant account services. Whenever a payment is made with a credit card it involves the transfer of funds to a merchant account. The holder of the account or merchant is responsible for the transactions that occur with the account. The bank or merchant account provider decides each accounts terms of service that the merchant must follow.
Already you are probably thinking this sounds complicated? How do I find the best merchant account for an ecommerce shop?
First and foremost, know the needs of your business. Make sure the merchant account provider offers the type of processing you need and that is has other plans that will allows you to diversify or expand in the future. Look for a merchant account provider that specializes in accounts for ecommerce shops and offers safe, reliable, and trustworthy service. Check out our other tips here to make choosing the best merchant account for ecommerce easy.
Get to Know the Payment Gateway
In addition to a merchant account, you must have a payment gateway if you want to accept credit card payments. Some providers combine the account and gateway into one service and others don’t. The payment gateway, which is how you access your merchant account, allows you to process returns, review transaction history, and issue refunds. Many of the more sophisticated payment gateways also include fraud detection services and chargeback mitigation systems. This is especially important since fraud is rampant online.
Ensure Software Works Properly
Ecommerce point of sale transactions are very important. A properly functioning and versatile sales process with quality software is vital to your business’ success. If there is a breakdown during the process or a flawed system, you cannot only lose customers but get hit with fees for chargebacks and returns.
Also, elect a merchant account provider that offers secure processing, PCI-compliant technology and data security, and quality customer service. Know its customer service hours and how representatives make themselves available. This is crucial because when a problem strikes, you don’t have time to wait. You need to know reliable, knowledgeable support is available.
Pay Attention to Fees
Most merchant account providers charge a percentage for all transactions conducted using the account. Additionally, expect service fees, including one flat rate for each transaction and one for each month you use the service.
Depending on the type of ecommerce business you run, you may be better off paying more up front but allows you to have a greater number of transactions each month. You have to look at your business and crunch the numbers to see what works best for you.
Finally, look for hidden limitations, like transaction volume caps, or charges that can end up being a real hit to your profit margin. For example, if you enter into an agreement with a payment provider that has daily or monthly transaction caps, a surge in sales could not result in your account being shut down.
Ask (Lots of) Questions
Choosing an ecommerce merchant account is not a decision that should be taken lightly. You don’t want to get into an expensive lengthy contract or find out that the provider doesn’t offer the state-of-the-art technology that your ecommerce needs.
Protect your business and your profits by doing internet research, checking reviews, and asking question. Find out how long a provider has been in business, what existing customers complain about, its online reporting capabilities, and how quickly they make deposits into your account. Answers to these will make your decision easier.
With so many merchant account service providers, you can get overwhelmed when trying to find the best merchant account for ecommerce. It doesn’t have to be. When choosing a ecommerce merchant account, you want to work with a provider that doesn’t charge exorbitant fees and you want to trust the way they process payments. Also, when it’s time to select a ecommerce merchant account, do not forget about those providers that also offer the reliability of accepting ACH debit payments and checks, as well as business funding. In the end, you need to get comfortable with the provider you choose and the offerings.
If you are interested in learning more about merchant account services, contact eMerchantBroker.com (EMB). We are a trusted, reliable payment solutions provider that specializes in working with ecommerce businesses.