subject: Where to keep the Money from your Ecommerce Business [print this page] Author: Jack Heape Author: Jack Heape
In this day and age, almost all people have bank accounts. Keeping your money in a bank is safer and practical than hiding it all under the mattress. Online businesses can make use of certain account types that can hold revenues that they make from sales through credit cards. The internet is full of people looking for opportunities to trick people into parting with their hard-earned money. Those within the credit card industry are very much aware of this fact that is why they are offering merchant accounts for online and offline businesses that accept credit card payments as a form of security measure. In a physical store, credit cards are swiped through machines to process payment transactions. In this article, we will look at merchant accounts that are intended for online businesses. eCommerce business owners use the services of a payment gateway whenever they accept credit card payments. A payment gateway aids them in handling all credit card transactions which they do automatically. Every payment is logged carefully. Unlike savings or checking account which you can use for a variety of purposes, a merchant account is only used for storing credit payments made by customers. Business owners can choose the type of merchant account that they want taking into consideration the fees and services offered for each type. An Internet merchant account is a type of account that is used by online business owners. This is primarily used only for temporarily holding money from credit card payments. On a preset schedule, funds are then transferred from an internet merchant account to a business owners merchant account. Obviously, there are a lot of fees involved when using a merchant bank account. You will need to pay an initial setup fee, monthly administrative fees, and a per transaction fee. Then you would also have to pay for additional fees for an Internet merchant account. The use of a payment gateway service entails a trail of other fees such as the initial fee and monthly fee. To use this service, you would also need to pay a fee for every transaction that it processes. So when deciding which service provider to use for your eCommerce site make sure that you do a thorough research. Ask questions about all the fees involved and request for a detailed listing. Make sure that service providers tell you all the benefits that you will get if you avail of their services. If you feel that a financial institution is withholding any information from you, then you might want to scratch it off your list. Doing business entails a lot of costs, whether its offline or online. With the help of a reliable financial institution, you should be able to see all your financial activities whenever you want and track the flow of your funds.About the Author:
Jack Heape is an online marketer with over 25 years experience in media, sales, and marketing. He specializes in assisting local companies establish an online presence through his company LinkLocal. Jack is the author of several ebooks and numerous articles. Visit his website for more information on local internet marketing.
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