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A Look at Personal and Third Party Merchant Accounts for Ecommerce

Written by Jen Loganthan

Thursday, 27 March 2008

There are many important things to consider when opening your business up to online purchases. One consideration could be your ability to handle the demands generated by 24-hour access to your products; can you keep up with the added orders? Another consideration is making sure your website can handle the amount of traffic present after increased exposure to a larger amount of purchasers due to internet accessibility; more customers are available than would ever visit your "brick and mortar" storefront in the lifetime of your business. However, if you do not have a way for the would-be customers to make their payment in a secure and expedient fashion, your internet showings can be for "window shoppers" only, so considering how to accept payment is of the highest priority.

Though there exists a myriad of choices of individual companies that will help organize and authorize these prospective payments for your online venture, there are basically two types of internet merchant accounts to choose from: An individual, or personal merchant account and a third party merchant account. An internet merchant account allows you to accept online purchases in the name of your company, personally, and is difficult to obtain for most new businesses. It requires a large setup fee in part, due to the fact that these purchases are made in "card not present" transactions. Smaller companies that are just starting out and doubtful of high sales often do not qualify for personal merchant accounts because most banks and regular merchant account providers require that a monthly volume minimum be met; if sales do not meet or exceed this minimum, you might find your business penalized with extra fees to assure your online sales proceed uninterrupted. These smaller businesses possessing lower processing volumes (lower sales) have a more feasible option for handling credit card purchases. Third party merchant account providers allow smaller or less established businesses to come together under one merchant account. The third party provider bundles many smaller businesses together under one account, taking responsibility for handling the processing details, allowing new business owners to concentrate more on strategies to help their online business grow. Third party providers require low or no monthly purchase minimums, add less extra fees, and often require no setup fees at all. Third party merchant providers do levy handling fees for each purchase made, but are nonetheless a highly viable option for newer online retailers.

New business owners needing to enlist payment companies to help with their online processing needs should contact a reputable company like Stradafee Limited whose expertise can point them in the direction necessary for prosperity.

Article Source: http://www.ArticleBlast.com

About The Author:

Jennifer Loganathan is the President and CEO of Stradafee Limited. Stradafee is a leading international payments company based in New York. Stradafee is a retail and merchant account provider specializing in credit card processing solutions. Please visit www.stradafee.com for more information.

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