What's a Store to do?
posted on Sun Jun 14th, 2009 at 2:14 PM by Brett Hart
Often, we're asked how a store can accept credit cards. I mean, it should be easy. There are 2 main ways... Services like PayPal or use a Gateway. Paypal's pretty easy. But, they take a large percentage of the sale. Gateway's should be easy, and they are... But, there are several pieces in the chain. Forget one, and you don't get paid!
First, a bank account! Yes, you need a business bank account.
Second, a merchant account. Not the same as a bank account. At least, not usually! Sometimes, your bank can set all of this up for you (including the merchant account). Other times, you'll need to get a merchant account on your own.
Third, the gateway. Make sure your ecommerce software accepts the gateway you choose! Writing a custom gateway script can get expensive quickly!
The worst part of this, is you can't just call up a gateway and get an account! They will require you to go through an intermediary possibly your bank. Sometimes another company that provides merchant accounts. You need to make sure that the gateway's they use can work with your ecommerce software. Even further, you could have a problem if the gateway requires you to install anything on your server. Since most web sites are hosted on shared servers, do you have the ability to install any software? In most cases no.
Fourth, if you want to accept anything other then the standard Visa and MasterCard, you will need to apply to become a merchant for them. AMEX, Discover,... usually charge an additional monthly fee and a slightly larger percentage of your sales to be able to accept their card.
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