| If you have an online business, there are many | | | | handle everything, and you will receive your |
| advantages in giving your cardholders the means | | | | money at the end of each payment period. A |
| to pay for your products or services through a | | | | third party merchant should also have excellent |
| credit card. Customers expect a professional | | | | security procedures in place for preventing fraud |
| company to have this facility and since paying by | | | | and protecting your customer's details. |
| credit card offers cardholders some protection on | | | | The downside of opting for a third party |
| their purchases they may be less trusting if you | | | | merchant is mainly that if your product does |
| do not. Paying by credit card is also seen as being | | | | become successful, you may be paying out an |
| instant and convenient, and potential customers | | | | awful lot in transaction fees. You also will need to |
| may be tempted to take their business elsewhere | | | | spend a great deal of time initially sourcing out the |
| without this option. Both of these factors mean | | | | best third party merchant to suit your needs. |
| that companies who allow credit card payments | | | | Third party merchants can vary widely in how |
| often have the greatest turnover and see the | | | | they operate, and unfortunately some are less |
| biggest profits. | | | | reputable than others. |
| Setting up the means to take credit card | | | | For more established businesses, your best option |
| payments can be intimidating if you are a small | | | | is to set up your own merchant service by |
| business owner and are not sure what steps to | | | | applying directly to the bank. Requirements for |
| take. Essentially, you have two main options. | | | | merchant accounts vary from bank to bank so |
| The first option is to use a third party merchant | | | | you will need to speak directly to them to obtain |
| such as CCBill and ClickBank. Some - but not all - | | | | their terms and conditions. The set up fee is |
| third party merchants charge a small set up fee. | | | | much higher than if you were to use a third party |
| But mostly you pay for their services through | | | | merchant, but the transaction costs are much |
| them taking a percentage of the profit on every | | | | lower. Therefore, if you have a successful |
| purchase made via credit card. Using a third party | | | | business you are saving money in the long term. |
| merchant is best suited to very small or new | | | | The negative aspect of setting up your own |
| business ventures as the set up fee is low or | | | | merchant service is that you are solely |
| non-existent (essential for if you are unsure | | | | responsible for setting up fraud prevention |
| whether the products or services you offer will | | | | measures and protecting your customer's credit |
| sell well). They also make it east to implement, as | | | | card details. The importance of this should not be |
| there is technical support on stand by to assist | | | | underestimated, and failing to do so can lead to |
| you if you encounter problems in setting up the | | | | your company being penalised under the Data |
| system on your website. Once it is set up they | | | | Protection Act. |