Online Credit Card Processing: Frequently Asked Questions
Embracing online credit card payments plays a pivotal role in the merchandising strategies of small-scale retailers. It serves as an equalizer for businesses lacking the infrastructure and reach to compete with larger corporations. Unlike alternative processing accounts, Internet processing accounts confer local merchants a substantial edge by granting them access to a global consumer base, thereby setting them apart.
If you believe your business requires an Internet processing account and have questions about Internet processing, the following answers can provide assistance.
Do I need an Internet account if I only sell locally?
Studies indicate that approximately one-third of active Americans and a corresponding percentage of U.K. shoppers favor online shopping over in-store purchases. While e-commerce has traditionally been associated with reaching remote consumers, it now effectively engages local ones.
Common reasons why consumers prefer shopping online to shopping in store include: better product selection, less pressure to buy, and less hassle.
Is credit the only type of payment I could accept through the account?
No. While Internet credit card processing is typically associated with credit card payments, it also facilitates payments via debit cards and electronic checks. A merchant service provider (MSP) can assist you in choosing the most suitable options for your customers before setting up an account.
How much can an Internet processing account improve my sales?
It is often said that businesses that opt for online credit card processing can improve their sales by 70%—a statement that comes from a statistic by the Electronic Transactions Association (ETA): 75% of consumers who have credit cards use them online.
A merchant’s decision to accept online payments may lead to such an improvement, but it does not always guarantee it. To arrive at an online sales estimate for your business, consult with a specialized ecommerce business consultant.
What are the contract terms for an Internet processing account?
Agreements for Internet processing accounts vary depending on the specific merchant service provider. Typically, these providers impose an array of account fees, encompassing transaction fees, statement fees, monthly minimum fees, gateway fees, and discount rates. Merchants generally find themselves obliged to honor their contract, as breaching it may result in an early termination fee. Additionally, certain services establish a monthly sales volume limit.
Always ask questions about sales caps before you open a merchant account.
How do I know if my products would sell well online?
Online shoppers usually prefer products that target a specific market, have affordable shipping costs, and come with clear descriptions. However, high-priced items that customers want to inspect in person, delicate products at risk of breakage during shipping, and certain food items can be exceptions to this trend.
An ecommerce business consultant can advise you on what products are most and least saleable over the Internet.
AVPS is Your Source for Merchant Accounts
With a vast array of MSPs to choose from, AVPS stands out by offering the finest options at competitive rates. Boasting 25 years of experience in servicing Small Business Merchant Accounts and merchants, we provide the expertise and insight that sets us apart as an MSP. Call us today to learn what online credit card processing can do for your business.