--- title: The Basics Of Merchant Accounts: description: Should you choose an online payment processor?If you are selling a product or service on the Web the... image: https://www.websitemagazine.com/hubfs/Imported_Blog_Media/gradient-regular-logo-mark-Jan-22-2023-11-47-48-1458-PM-Apr-10-2023-12-58-42-6152-PM-3-2.png --- [Log In](https://www.websitemagazine.com/_hcms/mem/login) [Subscribe](https://websitemagazine.tradepub.com/free/w_webk05/prgm.cgi) [![Website Magazine Logo](https://www.websitemagazine.com/hs-fs/hubfs/gradient-regular@3x-1.png?width=586&height=145&name=gradient-regular@3x-1.png "Website Magazine Logo")](http://Website%20Services,%20Inc.) - [About](https://www.websitemagazine.com/about) - [FAQs](https://www.websitemagazine.com/about/faq) - [Advertise](https://www.websitemagazine.com/about/advertise) - [Editorial Staff](https://www.websitemagazine.com/about/editorial-publishing-staff) - [Resources](https://websitemagazine.tradepub.com) - [Newsletter](https://www.websitemagazine.com/newsletter-sign-up) - More - [Contact Us](https://www.websitemagazine.com/contact) [Log In](https://www.websitemagazine.com/_hcms/mem/login) [Subscribe](https://websitemagazine.tradepub.com/free/w_webk05/prgm.cgi) Search - [Latest](https://www.websitemagazine.com) - [Design](https://www.websitemagazine.com/web-design) - [Development](https://www.websitemagazine.com/web-development) - [SEO](https://www.websitemagazine.com/seo) - [Ecommerce](https://www.websitemagazine.com/ecommerce) - [Content](https://www.websitemagazine.com/content) - [Marketing](https://www.websitemagazine.com/marketing) - [Advertising](https://www.websitemagazine.com/advertising) - [Email](https://www.websitemagazine.com/email) - [Infographics](https://www.websitemagazine.com/infographics) - [View All Topics](https://www.websitemagazine.com/channels) # The Basics Of Merchant Accounts: ![Peter Devereaux](https://www.websitemagazine.com/hubfs/Peter_Devereaux.png) [by Peter Devereaux](https://www.websitemagazine.com/ecommerce/author/peter-devereaux) 28 Oct, 2005 - - - [mailto:?Body=https://www.websitemagazine.com/ecommerce/internet-merchant-accounts](mailto:?Body=https://www.websitemagazine.com/ecommerce/internet-merchant-accounts) - Link Copied! ![The Basics Of Merchant Accounts:](https://www.websitemagazine.com/hubfs/Imported_Blog_Media/gradient-regular-logo-mark-Jan-22-2023-11-47-48-1458-PM-Apr-10-2023-12-58-42-6152-PM-3-2.png) | **Should you choose an online payment processor?** If you are selling a product or service on the Web then you absolutely must have some payment processing method or merchant account solution in place. Why? Well, try requesting payment via check that users must send via snail mail and see where you get. | ![](https://www.websitemagazine.com/hs-fs/hubfs/Imported_Blog_Media/creditcards1-2-1-1-1.gif?width=180&height=134&name=creditcards1-2-1-1-1.gif) | | --- | --- | The presence of merchant account solutions conveys instantly the legitimacy of an online business. Alternatives, in many cases, simply will not cut it in the minds of many users. While it may be true that consumers will still buy what you are selling even if you do not accept credit card payments, the chances that you will make a sale are increased dramatically by giving the customer the option of charging purchases on their credit card. A merchant account is simply a financial relationship between a retailer or service provider (the individual or group selling the product), a bank and payment processors. If you want to take orders online and let users pay with a credit card, then you must first establish a merchant account. To establish a merchant account, it is necessary to have a business checking account (which at least in our state of Illinois requires that you file a DBA - a *doing business as* petition - with the state you live in) or other proof that you are a legitimate business entity such as articles of incorporation, trade references and a formal statement of your return policy. Sounds easy enough, right? It is, until you come to the part about fees. Yes, there are fees associated with a merchant accepting credit cards and usually come in three varieties: discount rates (a percentage of revenue), transaction fees (which vary) and monthly processing fees, typically less than fifty dollars per month. A closer look at the fine print of merchant account contracts you will find information on application fees, address verification charges, monthly minimums, statement fees, costs incurred as related to charge backs (returns) as well as annual maintenance fees. But merchant accounts are not the only way to accept credit card payments online. Enter alternative payment processors such as [PayPal](https://www.paypal.com/), [StormPay](https://stormpay.com), [WorldPay](https://worldpay.com) and others. Since most online small businesses simply don't meet the requirements for merchant accounts (or they simply have no interest in paying the exorbitant associated fees) there is thankfully an alternative solution in online payment processors, and their popularity with many website owners is the proof. While the per-transaction rates are sometimes more expensive than traditional merchant accounts, the ease of opening an account and getting started accepting payment through an alternative online payment processors makes them default option for millions of active websites. **What to Look For In a Merchant Account or Online Payment Processor:** Regardless of whether you decided upon a merchant account that you can use to accept credit cards online or one of the many online payment processors, there are a few things you might just want to consider before making the decision. *- Can you accept a variety of payments?* It's essential that your merchant account enables you to accept all major credit cards; Visa, Mastercard, Discover, American Express, etc., as well as debit cards, and allows for payment to auction sites (if you sell items on auction sites). *- Are you able to manage transactions?* Legitimate payment processors will provide full features interfaces to monitor and control payments. In some instances, these merchant back ends will provide some method of communicating with your clients online through auto-responders and the like. *- Can you prevent fraudulent charges?* Payment processors should have a system in place to identify suspicious transactions with built-in fraud tools. Online credit card fraud costs merchants billions of dollars each year, so payment processors must make it known how they minimize this risk to help you maintain a successful Web business. *- Can you receive payments securely?* A dedication to security of private information is the hallmark of trustworthy companies. Your payment processor should be committed to protecting customer information as much as you are. ![Peter Devereaux](https://www.websitemagazine.com/hubfs/Peter_Devereaux.png) [Peter Devereaux](https://www.websitemagazine.com/ecommerce/author/peter-devereaux) As the Editor-in-Chief of Website Magazine and President of Website Services, Peter has established himself as a prominent figure in the digital marketing industry. With a wealth of experience and knowledge, Peter has been a driving force in shaping the landscape of digital marketing. His leadership in creating innovative and targeted marketing campaigns has helped numerous businesses achieve their revenue growth goals. Under his direction, Website Magazine has become a trusted source of information and insights for digital marketers worldwide. As President of Website Services, Peter oversees a team of talented professionals who specialize in SEO/SEM, email marketing, social media, and digital advertising. Through his hands-on approach, he ensures that his team delivers exceptional results to their clients. With a passion for digital marketing, Peter is committed to staying up-to-date with the latest industry trends and technologies, making him a sought-after thought leader in the field. - - - - - [mailto:peter.devereaux@websitemagazine.com](mailto:peter.devereaux@websitemagazine.com) #### Popular Post ### [The Impact of Late and Inaccurate Deliveries on Customer Loyalty ![The Impact of Late and Inaccurate Deliveries on Customer Loyalty](https://www.websitemagazine.com/hubfs/Imported_Blog_Media/package_delivery-1-1.jpg)](https://www.websitemagazine.com/ecommerce/the-impact-of-late-and-inaccurate-deliveries-on-customer-loyalty) ### [Top 50 Customer Relationship Management Solutions ![Top 50 Customer Relationship Management Solutions](https://www.websitemagazine.com/hubfs/Imported_Blog_Media/gradient-regular-logo-mark-Jan-22-2023-11-50-42-2994-PM-Apr-10-2023-01-15-57-0982-PM-2-2.png)](https://www.websitemagazine.com/ecommerce/top-50-customer-relationship-management-solutions) ### [Square Cash Now Available for Business Use ![Square Cash Now Available for Business Use](https://www.websitemagazine.com/hubfs/Imported_Blog_Media/squarecash-mini-Jan-22-2023-11-46-25-0939-PM-1-1-1.jpg)](https://www.websitemagazine.com/ecommerce/square-cash-now-available-for-business-use) #### Subscribe to Our Newsletter! 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All Rights Reserved - [Privacy Policy](https://www.websitemagazine.com/about/privacy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Peter Devereaux", "url" : "https://www.websitemagazine.com/ecommerce/author/peter-devereaux" }, "dateModified" : "2023-05-01T20:27:48.421Z", "datePublished" : "2005-10-28T05:00:00.000Z", "headline" : "The Basics Of Merchant Accounts:", "image" : [ "https://www.websitemagazine.com/hubfs/Imported_Blog_Media/gradient-regular-logo-mark-Jan-22-2023-11-47-48-1458-PM-Apr-10-2023-12-58-42-6152-PM-3-2.png" ], "mainEntityOfPage" : { "@id" : "https://www.websitemagazine.com/ecommerce/internet-merchant-accounts", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.websitemagazine.com/hubfs/gradient-regular@3x-1.png" }, "name" : "Website Services, Inc." } } ``` ```json { "@context" : "https://schema.org", "@type" : "NewsArticle", "author" : [ { "@type" : "Person", "name" : "Peter Devereaux" } ], "headline" : "The Basics Of Merchant Accounts:", "publisher" : { "name" : "Website Magazine", "url" : "https://www.websitemagazine.com/" } } ```