| | Step 5 continued - Accepting Credit Card PaymentsHow to accept credit card payments on your websiteIf you have your own products, such as something you make, or you want to buy goods from another company and then resell them on the internet and ship them to the consumer, it is possible, but there are many more challenges than with advertising or affiliate sales. You'll need to learn about setting up a shopping cart, payment engines, shipping services and what to do when things go wrong. - ShoppingCarts
- Merchant Bank Accounts
- PayPal
- Credit Card Processors
Methods for Credit Card PaymentsThere are two general methods to accept credit card payments on your website: - Get Your Own Merchant Account. You will need a business bank account that offers merchant accounts. Netbank is one bank that works well..
- Use a Third Party Merchant. There are plenty of online companies that will accept credit cards payments on your behalf in exchange for monthly fees and a percentage of each sale.
Which Method is Best?There isn't really a "best"; it is more about what type and size of business you have. BUT, in general, you will probably want to start with the Third Party Merchant first! Your own merchant account: Advantages: - Lower transaction fees (the fee you pay on each sale)
- Your own merchant account may appear more professional.
Disadvantages: - your own merchant account will require upfront costs and higher monthly fees.
Third Party Merchants Advantages: - little or no monthly fees
- A third party merchant is a good way to test or start out a new business or product line.
- The merchant takes care of everything for you. (You just get a check each month for the previous month's total sales)
Disadvantages: - The transaction fee is much higher when you use a third party as compared to when using your own merchant account.
How to choose a third party merchants| Name | Allows you to sell | Credit cards accepted | One time setup fee | Per transaction fees | Other restrictions and comments | | | Physical products | Electronic files or services | | | PayPal | Yes | Yes | Visa, MC, AmEx | None | Premier or Business account users are charged $0.25 for transactions of $15 and less, 1.9% plus $0.25 for transactions above $15 (when customers pay by credit card) | Accept credit cards, bank transfers, debit cards, and more—at some of the lowest costs in the industry. Plus, your customers can pay you instantly, even without a PayPal account. | | | 2Checkout.com | Yes | Yes | Visa, MC, AmEx | $49 one time signup fee | $0.45 per Sale plus 5.5% of Sale Amount
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FREE on-line tech support | | | CCBill | Yes | Yes | Visa, MC, AmEx | no setup fees | Vary based on the volume of sales in each accounting period. The fees max out at 13.5% of revenues charged during this one-week period for CWIE hosting clients and 14.5% for non-hosting clients. | | | | CCNow: | Yes | No | Visa, MC, AmEx | No setup fee | 9% per transaction except in the November and December where the fees are 8% per transaction. | | | | Clickbank | No | Yes | Visa, MC, AmEx | $49.95 | $1 plus 7.5% | | | | Digibuy | No | Yes | Visa, MC, AmEx | unknown | 13.9% per transaction | For software authors only | | | Kagi | Yes | Yes | Visa, MC, AmEx | No setup or monthly fees | 6.5% up to a maximum of $3.00 plus 3.5% plus $0.50 for processing costs | | | | ProPay | Yes | Yes | Visa, MC, AmEx | $35 sign-up fee | Similar to PayPal | only in the US.
no monthly charges. | | | RegNow | No | Yes | Visa, MC, AmEx | unknown | 20% of your sale price with a minimum of $2.00 | for software authors to sell their programs. | | | Share-It | No | Yes | Visa, MC, AmEx | unknown | $2.95 plus 4% per order, and $1.95 plus 4% for the 1000th order of the month and above. | for shareware authors | | | V-Share | No | Yes | Visa, MC, AmEx | unknown | unknown | only for selling shareware | |
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