Accept Credit Cards Free Online

'Accept credit cards free online': how to assess what's really on offer.

The Best Deal on Credit Card Processing

Yes, you can accept credit cards free online, but the 'free' will certainly involve some hidden costs. Online merchant accounts are various and complicated, and there's no alternative to understanding what is being offered and why. Any merchant account should a) offer good terms, b) provide legal safeguards to all parties, c) allow you to upgrade the service or move to another provider without heavy penalties and d) have the machinery and experience to resolve any difficulties promptly.

 

Bank or ISO?

Both banks and ISOs watch the bottom line, but banks are more concerned with security and reputation, while ISOs naturally want a fatter profit margin to cover the increased risks. Banks are therefore cheaper but choosier. ISOs are more tolerant, providing fuller services to Internet businesses, but at a cost. A rough comparison is provided by our e-book.

Transaction Charges

The transaction charge is commonly made up of two components: a fee charged at a flat rate on each transaction and a fee charged as a percentage of the value of the transaction (discount rate). Both vary widely, and your choice will be guided by the nature of your business. Generally, you'll aim as follows:

• low sales volume – try to minimize monthly charges.
• low cost items – go for low flat fees and higher percentage transaction charges.

The Best Deal on Credit Card Processing

Yes, you can accept credit cards free online, but the 'free' will certainly involve some hidden costs. Online merchant accounts are various and complicated, and there's no alternative to understanding what is being offered and why. Any merchant account should a) offer good terms, b) provide legal safeguards to all parties, c) allow you to upgrade the service or move to another provider without heavy penalties and d) have the machinery and experience to resolve any difficulties promptly.

Bank or ISO?

Both banks and ISOs watch the bottom line, but banks are more concerned with security and reputation, while ISOs naturally want a fatter profit margin to cover the increased risks. Banks are therefore cheaper but choosier. ISOs are more tolerant, providing fuller services to Internet businesses, but at a cost. A rough comparison is provided by our e-book.

Transaction Charges

The transaction charge is commonly made up of two components: a fee charged at a flat rate on each transaction and a fee charged as a percentage of the value of the transaction (discount rate). Both vary widely, and your choice will be guided by the nature of your business. Generally, you'll aim as follows:

• low sales volume – try to minimize monthly charges.
• low cost items – go for low flat fees and higher percentage transaction charges.
• high cost items – go for higher flat fees and low percentage transaction charges.

Evaluating a Merchant Account

A merchant account is a business transaction, and you'll start by evaluating the Merchant Account Provider itself. Banks are reputable, but too many ISOs don't deliver. Ask:

What credit cards does the merchant account handle? And do they accept these cards worldwide or only within a selected area?

The cost of a merchant account includes a setup fee, a monthly charge, and a cost per transaction (generally a flat fee per transaction plus a percentage of the value of the transaction.) Banks will certainly retain some percentage of funds to protect themselves from charge-backs — i.e. for those purchases not honored by the customer, either deliberately or through forgetfulness. What are the percentages retained, and for how long? Is a fee imposed for charge-backs, and/or beyond a certain level of charge-backs? The more cautious banks, particularly outside the USA, may also require a security deposit, which can be punitive for smaller businesses.

Your business will be online 24 hours a day, and you expect the payment gateways to be equally responsive. Most are, but case histories sources on our resources page will provide a few horror stories. Then there are security aspects and the transactions that go off the rails: how helpful are the merchant account providers here? Again you need to read the detailed information in our e-book.

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