If you begin an online retail business, you will likely need to accept credit cards, the most widely accepted form of payment online. To do so, you will need to either have your own merchant account or select a third party payment processor. Many online retailers opt for the latter option because it provides conveniences and ease when accepting payment from customers. If you are selecting a payment service provider, here are a few things to keep in mind.
Registration Fees
Do they require a setup or registration fee? Some companies require it upfront while others do not require it at all.
Transaction Fees
Most (if not all) payment service providers charge a certain amount for every transaction made on your site. Usually a percentage of the total amount of the purchase, it can range anywhere from 2% to 20% depending on the provider.
Additional Fees
Before you sign with a provider, make sure you are fully aware of any additional fees that you may be required to pay, such as fees for charge backs.
Global Payments
If you are servicing markets in foreign countries, make sure the payment service provider accepts global payments made in foreign local currencies. Some services accept payments only in the U.S. while others accept from a specific list of countries. There are also providers with no restrictions at all, so make sure you choose one that meets your needs.
Receiving Payments
Find out how the payment provider will be transferring your payments – by mailed check, an ACH transfer, or even a real-time bank transfer.
Customer Service
No doubt you’re going to need a little help once you’re up and running, so find out what customer service platforms are offered by the provider. Do they offer a customer service line? Are all inquiries answered promptly and within 24 hours?
Rate of Payment
You should consider how often the payment provider sends payments. Some will send it as soon as a customer makes a payment. Others make weekly or even monthly payments.
