Payment Options For Your E-Commerce Site

The increasing popularity of e-commerce has resulted in a variety of different ways in which companies and consumers conduct business online. Goods and services are typically purchased online via three common methods: online check solutions, third-party processors and merchant accounts. One of these three options should suffice depending on the nature of your business. A larger business may even consider using a combination to cover as many potential opportunities as possible.

Online Check Solutions

Online check solutions are quite popular as they allow consumers to submit payments directly from their checking account. Consumers are required to provide their bank account and routing number to the online processor in order to make payments. Online check solutions may be linked with existing business checking accounts, eliminating the need to open additional accounts. This option is able to reach a broad ranch of potential customers and offers a quick system that’s easy to use. There is one negative however. The rising publicity of fraud and internet scams has many consumers concerned about conducting business online. Some will choose other options that appear more secure such as using credit cards that offer rewards on their purchases.

Third-party Processors

Many consumers have turned to third-party processors to make purchases. This option allows online businesses to accept credit card payments without having to apply for merchant accounts. As the name indicates, third-party processors handle credit card transactions through merchant accounts of their own. They charge a certain percentage of the transaction and possibly other fees which are paid to the merchant. These fees are typically higher than those charged by a merchant, but the convenience is what has made third-party processing an extremely popular option. The most recognizable entity providing this service is PayPal. Other alternatives include ClickBank and CCBill.

Merchant Accounts

Merchant accounts allow business owners to directly charge the customer’s credit card, eliminating the need for more costly third-party processors. This is one option that may indicate a more secure e-commerce environment in the mind of potential clients. Unlike the third-party processing industry which is much smaller, merchant account providers make up a much larger selection. There are a number of different fees associated with a merchant account and applicants are required to meet certain qualifications to be approved. Because of this, it is safe to assume that merchant accounts are not made for every business. This option is more suitable for high-volume e-commerce sites that have the credentials and resources to meet qualifications and can afford the initial fee. Providers like PayQuake, offer a number of services that are suitable for both low and high-volume businesses.

Conclusion

There are a number of options to consider for your e-commerce site. Although online check systems are the least preferred of the three, they remain common and allow you to cover consumers in that area of preference. Third-party processors are growing in popularity and make it much easier for you to open up an online store. Merchant accounts offer the most respected means of accepting payment though they are much more difficult to obtain. Regardless of what solution you choose, be sure to conduct the necessary research to find out which one best suites the needs of your business.

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