How to Choose a Third Party Payment Processor for Your Business Website

[ctopayhk3]

How to Choose a Third Party Payment Processor for Your Business Website






If you are trying to sell a product or service on your business website, youwould need a way of accepting payments on it. The most popular mode of paymenton the web is credit cards. Credit cards can be accepted in two ways on awebsite. You can have your own merchant account, or you can use a third partypayment processor. If you are just starting out, and operating on a limited budget, it is better tochoose a third party payment processor. This is because merchant accountsrequire 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 aprocessor:





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 eachpayment that is made through them from your website. This is usually apercentage of the total transaction amount and can range from as low as 2% to ashigh as 20%. Other FeesSome payment processing companies also levy other fees that may not be obviousat first glance. For example, there might be fees for bounced checks or chargebacks from the customer.



Merchants Accepted


Some payment processing companies accept clients only from the US. Others havelist of specific countries from which they accepts customers. Yet others acceptclients from all over the world with no restriction on region.



Products Accepted


Some companies only let you sell intangible products, which can be downloaded oremailed and don't need to be shipped. Others have no restriction on what can besold through them. Some specialize in selling only physical products.



Payment Method


Different payment processing companies have different methods of transferringpayments to its clients, and charge varying fees for this service. You can get acheck mailed to you, or you can request an ACH transfer to your bank. If you areinternational client, some companies will also arrange for an international wiretransfer.


Payment Frequency

The payment frequency for all companies is also different. Some pay as soon asthe customer makes the payment, others may make weekly, bi monthly or monthlypayments to their clients.


Customer Service


It is essential for a payment processing company to respond promptly toinquiries and to be customer friendly and reliable. The company shouldpreferably have a reliable support system in place and respond to inquirieswithin 24 hours. Review the service terms of your payment processing company carefully to ensurethat you are getting a god deal and would have no problems in the future.Here is a list of some popular payment processors:



PayPal
IBill
ClickBank
2CheckOut
ProPay
CtoPay (Only for high risk business)






Signature:-----------------------------------------------------------My email: sales-04 at ctopay doc hk

[Emilyecho]

Very very very...helpful. Thanks for your great info.

[ctopayhk3]

Thank you for you repply ,Is the matter you need? If you want to know more ,you can ask me .

[kiberlain]

For some industries, merchant accounts can be more difficult to obtain as they are thought to be a high risk by the merchant account provider. Such industries include:

• Replica Products • Dating • Telemarketing • Adult • Multi-Level Marking • Cell Phone • Auctions • Travel • Pharmacy • Gambling • Pornography •

Banks and third party merchant account providers consider these industries a higher risk due to a higher level of charge backs, returns/refunds and credit card fraud. As a result of the high risk associated for the provider of the merchant account, there are higher rates associated with merchant accounts.
It can be difficult to obtain a high risk merchant account from a bank and in most cases can also be quite expensive. Typically speaking, banks do not provide merchant account services to high risk merchants, if they do their rates will be higher than available from a third party provider. Third party merchant account providers can provide accounts to high risk merchants as they have relationships with multiple banks, allowing them to ‘spread’ around the risk.
Due to many competing third party providers, rates for high risk merchant accounts can be significantly lower than those from a bank. However, the rates will be higher in order to offset the risk involved. Typically, application fees for a high risk account range from $500 to $5000, though not all providers charge application fees. Then there are two charges that occur each time a transaction is processed:

• The transaction fee is a flat rate fee between $0.35 and $0.75
• The discount rate is a percentage of the transaction amount, and is usually anywhere from 3% to 15% for a high risk merchant.

Other fees include monthly statements and services such as fraud protection, as well as charges for refunds and charge backs.

[PerFectMOney]

your best consideration of third party payment processor should be the one who has good reputations already,the choice from 2checkout is OK and beside reputations I think you need to search first over the internet "Rate of the company"more positive rate they got,there you should go out

[safdar_ali]

Thanks ctopayhk3 for sharing information regarding the process of online payments.

Anybody has idea about: Moneybookers - Send and receive money ? Online payments ? Money transfers

or

which one third party payment concern (company) is the best?

Safdar Ali
Lahore-Pakistan

[ctopayhk3]

Originally Posted by safdar_ali

Thanks ctopayhk3 for sharing information regarding the process of online payments.

Anybody has idea about:money book
or

which one third party payment concern (company) is the best?

Safdar Ali
Lahore-Pakistan

Which one third party payment conern is best ,maybe decide by your business.
Could you mind to tell me what is your business?

[ctopayhk3]

Originally Posted by PerFectMOney

your best consideration of third party payment processor should be the one who has good reputations already,the choice from 2checkout is OK and beside reputations I think you need to search first over the internet "Rate of the company"more positive rate they got,there you should go out

OK，I will check the price of them ,thanks a lot .

[ctopayhk3]

Originally Posted by kiberlain

For some industries, merchant accounts can be more difficult to obtain as they are thought to be a high risk by the merchant account provider. Such industries include:

• Replica Products • Dating • Telemarketing • Adult • Multi-Level Marking • Cell Phone • Auctions • Travel • Pharmacy • Gambling • Pornography •

Banks and third party merchant account providers consider these industries a higher risk due to a higher level of charge backs, returns/refunds and credit card fraud. As a result of the high risk associated for the provider of the merchant account, there are higher rates associated with merchant accounts.
It can be difficult to obtain a high risk merchant account from a bank and in most cases can also be quite expensive. Typically speaking, banks do not provide merchant account services to high risk merchants, if they do their rates will be higher than available from a third party provider. Third party merchant account providers can provide accounts to high risk merchants as they have relationships with multiple banks, allowing them to ‘spread’ around the risk.
Due to many competing third party providers, rates for high risk merchant accounts can be significantly lower than those from a bank. However, the rates will be higher in order to offset the risk involved. Typically, application fees for a high risk account range from $500 to $5000, though not all providers charge application fees. Then there are two charges that occur each time a transaction is processed:

• The transaction fee is a flat rate fee between $0.35 and $0.75
• The discount rate is a percentage of the transaction amount, and is usually anywhere from 3% to 15% for a high risk merchant.

Other fees include monthly statements and services such as fraud protection, as well as charges for refunds and charge backs.

Yes, the fee offen include the transation rate , annual fee or monthly fee ,usually the high risk business run by a low rate, they usually charge a setup fee.

[mamemeawebsite]

Can we accept creditcards through thirdparty payment processors ? Is the customer experience any different for thirdparty processors versus a merchant account ?

[Rental Lease]

Wow, that's quite an extensive guide, thanks for breaking some of that down for us!
Cheers,

[EcommerceTechs]

Great guide. But in the final list it should be LoudCommerce.Com
That kind of company its great for small-medium business.
Just my two cents.