There are two major ways in which a business can accept credit card and electronic check payments over the internet. The first and most effective way to accept payments online is through the use of a payment service provider and a merchant account. This option does take a little bit more time and effort to set into motion when compared to the alternative: third party processing, but many businesses have found it to be well worth the extra effort when you consider the additional professionalism and security involved.
Payment service providers are professional companies which offer payment gateways and online virtual terminals which allow businesses to accept payments from credit cards much in the same way that a brick and mortar retail company would accept payments in person. Although some payment service providers have monthly fees or set up fees, the percentage fee per transaction is typically significantly lower than what is charged using a third party payment processor.
Third party payment processors exist in numbers that are constantly growing, as the popularity of e-commerce and start up online businesses grows as well. These payment processors take a percentage of each payment that you accept, and the percentage rate can greatly vary from processor to processor. Buy verified stripe account Third party payment processors like PayPal charge low percentage fees for each transaction. Many also charge monthly service fees and setup fees for virtual terminals, which makes third party payment processors just as expensive as payment service providers, if not more so.
These third party payment processors may seem like a dream come true, especially when it comes to small businesses that are looking for the lowest possible start up costs. However, payment service providers are much more inexpensive in the long run, and have been found to be much more secure and reliable as well. If you are looking for a fast alternative for receiving payments, you may consider a third party processor, but if you are looking for the best and most inexpensive option for your business, payment service providers are the only way to go. They are well worth the effort involved, because they are significantly more professional, and offer much stronger security to protect both your business, and all of your customers and clients.
If you are looking for a way to accept payments over the internet, signing up with a payment service provider is your best option, especially if you want to save money without sacrificing reliability or security.