Online Credit Card Processing: Frequently Asked Questions

Accepting credit payment online is a critical aspect of merchandizing for small merchants. Without the facilities and locations to compete with big companies, an Internet credit card account helps them to level the playing field. Unlike other processing accounts, an Internet processing account reaches millions of consumers worldwide—a godsend for merchants who exist locally.

If you think that your business needs an Internet processing account, but you have questions about Internet processing, the answers below can help.

Do I need an Internet account if I only sell locally?

Research shows that roughly one-third of active Americans prefer to shop online instead of in-store. A similar statistic exists for shoppers in the U.K. Although selling online is typically associated with reaching remote consumers, it is now useful for reaching 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. Although Internet processing is typically associated with credit payment, it also facilitates debit card and electronic check payments. Prior to setting up an account, a merchant service provider (MSP) can assist you in choosing the best options for your customers.

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.

While such an improvement could occur after a merchant decides to accept online payments, it does not always occur. The best way to arrive at an online sales estimate for your business is to speak with a business consultant who specializes in ecommerce.

What are the contract terms for an Internet processing account?

Contract terms for Internet processing accounts vary by merchant service. The following account fees are charged in most cases: transaction fees, statement fee, monthly minimum fee, gateway fee, and discount rate. Most services require merchants to fulfill their contract or face an early termination fee, and some services impose a monthly cap on sales volume.

Always ask about sales caps before opening a merchant account.

How do I know if my products would sell well online?

Products that have a defined target market and are affordable to ship usually sell well online. Exceptions include high priced items that people wish to inspect firsthand, delicate objects that could break while en route, and certain foodstuffs.

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

At AVPS, we know you can choose from thousands of MSPs. This is why we offer the best options at competitive prices. With twenty-five years of experience servicing Small Business Merchant Accounts and merchants, we have the experience and insight you need in an MSP. Call us today to learn what online credit card processing can do for your business.

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