Accept Credit Cards: Third Party Processing Solutions
by Jeff Cohen @ iMerchantNetwork.com

It is a common misconception that if you want to accept credit cards on your web site you must have a credit card merchant account.

You will be happy to know this is not the case.

You can start accepting credit cards (usually within a few minutes) with a third party credit card processor.

What the heck is a third party credit card processor?

A third party credit card processor is essentially a company that accepts credit card payments on behalf of you or your company. In other words, your customers' payments are processed through a third party's merchant account, and you are paid by the third party processor (minus a 6% - 15% commission, of course).

There is no need to pay for processing software, a virtual terminal or gateway, monthly fees, etc. You only pay a percentage fee on each sale.

A few examples of third party processors are Paypal, 2Checkout.com and ClickBank.

Should I choose a merchant account or third party processor?

If you process less than about $1,000 per month or have limited funds available to you, start with a third party processor. It's less of a headache and you've got no long term commitment or contract. A third party processor may charge more per sale than a merchant account, but it is a great testbed for a new business idea.

As your busines grows and you know your business model works, upgrade to a credit card merchant account.

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