Acceptance of Credit Cards Without a Merchant Account

An online store can accept credit card payments, even without a merchant account, by setting up a third-party credit card processor, also known as an online merchant account.

Many businesses are now accepting credit cards just to increase their cash flow and sales, and to invite more customers who prefer to pay with their credit cards. Most online stores today are now open for this innovation and that it will greatly help their businesses to grow.

In order for online retailers to accept credit cards, they may have to open an account or a third-party card processor, also known as payment gateway or online merchant account.

Getting an account is the first option to get a more flexible payment option for your online business. Though getting it is costly and not easy, most merchants still want to acquire an account because of its many benefits such as more customers, secured transactions, and it also boosts business potential to the global market.

Third party processors or online account is a great option

There is also another option in order for your business to accept credit cards and that is acquiring a third party card processor or an ‘online’ merchant account. It offers good services in regards to your business’ credit card processing needs just like a regular account. You can choose from a variety of payment gateways available in the Internet such as PayPal, ClickBank or PaySystems.

Third-party card processors or payment gateways are establishments that take payments or orders from credit cards from online businesses. They practically do all the processing and transactions of payments for the online store and will send the funds into your ordinary bank account. Most of these third-party card processors also has services that are compatible with your online store like a 24/7 customer service and support, a shopping cart script, and they can also accept any other forms of payment online.

Others may advertise that third-party card processors are free but actually they are not. Their setup costs may be very low and some are free, but they get a small percentage of every transaction made in your account. Third-party card processors may charge you more with every sale than an account, but this is a good choice for retailers who are on a budget and are avoiding the costs of setting up an account.

It is still the merchant’s choice if he will trust his business’ credit card processing needs to a regular account or a third party processor. But for most online retailers, setting up an online account is a very good choice to accept credit card payments. It is easy, quick and not expensive.