Accepting credit cards is crucial for your Internet business

Accepting credit cards is crucial for your Internet business

Accepting credit cards as a form of payment through your company's Web site can really open up your business to more customers. As a business owner with an Internet presence, you need to be able to accept credit cards on your Web site. Not only does the ability to accept credit cards online grow your potential customer base, but also it will make your customers appreciate both the speed and convenience that comes with it.

When you consider that the world's Visa credit card holders alone purchase more than $3 trillion in goods and services annually, according to Computerworld, it seems silly for a business owner not to accept credit cards.However, to accept credit cards online, a business must have an online merchant account. Fortunately, there are many vendors willing to help your business obtain a merchant account to accept credit cards.

The cost you will pay to accept credit cards will be the biggest factor to consider. There will typically be a handful of costs associated with a merchant account: 

• Setup fees
• Discount rate
• Fixed transaction fees
• Other fees, such as an early termination fee and a charge-back fee.

The setup (or application) fee covers the costs associated with processing a merchant account application to accept credit cards and, in some cases, is waived. Jeff Quick at FindMyHosting.com recommends choosing a provider that does not have this fee.

The fixed fee, also known as a statement fee, is a monthly fee that allows you to accept credit cards. Depending on the provider, this will typically be around $10 a month, although you may find that many merchant account providers have a minimum monthly fee of $25, regardless of the fixed fee rate.

The discount rate is basically a commission for the merchant account provider, and will often range from 2 percent to 4 percent of the purchase amount. This is the cost to accept credit cards.

A fixed transaction fee, on the other hand, is the same regardless of the amount of purchase. This fee is generally around 25 cents.

However, when you weigh the costs to accept credit cards to the potential for increased sales, you are sure to come out ahead of the game.

Published: March 4,2023