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Choosing a Merchant Account Payment Processing Service

If you are just starting out with a new online business, one of your first considerations will be which merchant account payment processing service to use.  Small and home-based businesses can take advantage of many different payment processing services to handle credit card and e-check transactions online. 

And by using a third-party merchant account payment processor, a small-business owner can effectively eliminate much of the hassle and red tape involved in transacting credit card payments online, leaving you more free time to promote and build your new business.

Larger and more established businesses may choose to set up their own “in-house” payment processing system by establishing their own merchant business account.  But for small businesses, having a third-party company handle credit card payments online is usually a far better option, and provides a more “hands off” method of conducting business online, as your merchant account payment processing service will handle the details for you.

While using payment processing services is certainly more convenient than attempting to set up your own merchant account, there are also drawbacks.  Third-party payment processing tends to be slightly more expensive than setting up a merchant account for your business, and there can also be occasional delays in receiving payments.

Another (admittedly minor) drawback is that your company name will normally not appear on your customers receipts or credit card statements after a purchase.  Instead, your payment processing service’s name will appear, which can potentially confuse your customers.

Normally this is not a major concern, and despite the few downsides mentioned, using a third-party company for merchant account payment processing is usually a great value for small or home-based businesses, and will allow you to accept credit card and other payment methods from around the world.

Another great advantage of using merchant account payment processing is that you are effectively “outsourcing” the technical aspects of accepting credit card payments.  For example, if you are not comfortable with programming or implementing API code, setting up your own merchant account and online payment system is probably a bad idea.  Using a third-party service simplifies the entire procedure, and most providers will even include some level of after-the-sale customer service with your account, such as handling payment inquiries or credit card charge-backs.

These benefits alone make using merchant account payment processing services desirable for many online businesses.  If you’re just starting out in business, or adding an online presence to your existing business, compare features between merchant account payment processing companies and you are sure to find a provider that fits your needs.