Before any business can trade online they must have the ability to accept payments through credit cards for their goods and services, they must first have fully functioning web site. Merchants should then apply for a merchant account. In order to accept credit cards at your online store, you need to have a merchant account for each credit card brand that you want to accept such as Visa, MasterCard, and American Express.
- Set-up fee: Varies from bank to bank, though most offer it free-of-cost.
- Transaction or discount fee: Either a percentage on every sale or a fixed fee per transaction that you make through the Internet. A discount merchant account brings a merchant all the many features of the best electronic payment processing systems, but with most of those features free.
- Chargeback fee:A chargeback is a refund that is forced by a cardholder’s Credit Card Company or bank. Thus, if a customer request to reverse the purchase that either was not received or arrived damaged or faulty. So, not only will you NOT receive the money for the sale, you are charged additional money.
There are several other prerequisites for applicants, but they are simple. Although a good personal and business credit history will ensure approval for Merchant Account.