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| Thu Dec 28, 2006 7:17 pm How to Choose a Third Party Payment Processor |
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How to Choose a Third Party Payment Processor for Your Business Website
E-Commerce | Articles
If you are trying to sell a product or service on your business website, you
would need a way of accepting payments on it. The most popular mode of payment
on the web is credit cards. Credit cards can be accepted in two ways on a
website. You can have your own merchant account, or you can use a third party
payment processor.
If you are just starting out, and operating on a limited budget, it is better to
choose a third party payment processor. This is because merchant accounts
require high upfront and regular charges. Before choosing a payment processor,
it is important to investigate their terms of service.
Following are some of the terms you should be aware of before choosing a
processor:
Set up fee
Some companies require an upfront amount for registration with their service.
Others have no set up or registration fee.
Per Transaction fee
Almost all payment processors charge a certain amount for processing each
payment that is made through them from your website. This is usually a
percentage of the total transaction amount and can range from as low as 2% to as
high as 20%.
Other Fees
Some payment processing companies also levy other fees that may not be obvious
at first glance. For example, there might be fees for bounced checks or charge
backs from the customer.
Merchants Accepted
Some payment processing companies accept clients only from the US. Others have
list of specific countries from which they accepts customers. Yet others accept
clients from all over the world with no restriction on region.
Products Accepted
Some companies only let you sell intangible products, which can be downloaded or
emailed and don't need to be shipped. Others have no restriction on what can be
sold through them. Some specialize in selling only physical products.
Payment Method
Different payment processing companies have different methods of transferring
payments to its clients, and charge varying fees for this service. You can get a
check mailed to you, or you can request an ACH transfer to your bank. If you are
international client, some companies will also arrange for an international wire
transfer.
Payment Frequency
The payment frequency for all companies is also different. Some pay as soon as
the customer makes the payment, others may make weekly, bi monthly or monthly
payments to their clients.
Customer Service
It is essential for a payment processing company to respond promptly to
inquiries and to be customer friendly and reliable. The company should
preferably have a reliable support system in place and respond to inquiries
within 24 hours.
Review the service terms of your payment processing company carefully to ensure
that you are getting a god deal and would have no problems in the future.
Here is a list of some popular payment processors:
PayPal.com
IBill.com
ClickBank.com
2CheckOut.com
ProPay.com
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By Cavyl Stewart
Cavyl Stewart is the owner of http://www.find-small-business-software.com
which is dedicated to providing resources and information on finding the
software solution that is right for your needs and budget. |
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