Choices, choices, choices!

You’ve written the best online marketing plan you could ever produce, and you’re on your way to creating your very own Internet empire at the helm of your new online business. The next thing you should decide, is how best to collect money online. New online retailers are constantly besieged by choices such as PayPal, merchant accounts and other payment processors as well as online shopping cart software providers. The shopping cart icon on one website may look similar to another site’s icon but the company that manages the payment on the other is very much different!

I am sure most merchants are aware that when purchases are made in a brick and mortar outlet, for example when you buy your favorite books or mags at the local Barnes & Noble store using a credit card, a secure electronic transaction is recorded via a POS (point of sale) system. However, once you decide to setup an online business, a payment gateway is utilized. Solutions to facilitate these online transactions are aplenty, so new merchants will need to decide which gatekeeper to use for their Internet e-Commerce business.

To PayPal or not to PayPal?

Most newbie online sellers will agree that PayPal is the first and most obvious choice when they decide to start an Internet business. The merchant in my several years ago would never hesitate to use PayPal first and foremost, because I am confident that my customers would buy my products because they can pay using their own PayPal accounts easily and without fear of repercussions. Google Checkout is also a well established service, deemed the perfect turnkey solution for new Internet business owners.

However, most sellers are not aware that another solution lurks nearby in the form of credit card processors that are not household names akin to PayPal or Google Checkout. The main advantage provided by these credit card processing service provider is that they offer back end integration with your site as well as efficient shopping cart software with features you may not enjoy with conventional companies like PayPal. Price-wise, some providers will ask for a higher or lower price compared to turn key providers but it all boils down to what added features you need. It is wise to pay only for features that will benefit you and your business.

What some new Internet merchants are doing is skipping over popular providers like PayPal and signing up directly with a credit card processor. Most reported complete satisfaction, and were glad they chose their current processor because they felt PayPal’s fees could cost a lot in the long run. However, some chose to avoid headaches concerning a cornucopia of fees by just opting for turnkey providers.

Our next post will touch on pros and cons of turnkey providers as well as credit card processors. Watch out for it, same time same place!

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