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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Many web business owners have trouble finding the right merchant accounts. When they ask experience merchants, all they get is a one-word reply: “Research.” But how does a newbie merchant perform proper research without knowing the bare essentials? If they do not how to source for information in obtaining a merchant account, they may be discouraged and might potentially miss out on more than 60% of the profit opportunities that they can enjoy.

In this two-part blog post, we will discuss ways to get you started on establishing the right online merchant account for your web business.

1. Know your needs
Don’t be pressured into signing up for every single optional feature offered by a merchant account provider. The company may be trying to sell you features you do not need and that can cost you quite a pretty penny in the long run. Who wants to pay for something they don’t really need? You’ll be able to obtain them later once your business grows. Right now it’s wise to focus on your business and minimize costs.

2. Discover real-time processing features
Real-time transaction processing is offered by most, if not all, merchant account provider. This sounds very impressive and if you are tempted to buy into this feature, I won’t fault you but do know that this feature is more expensive and is generally more suited for those whose web business is involved in high volume systems or for merchants who distribute electronic products such as e-Books and software.

3. Technical compatibility issues
Some e-Commerce features offered by merchant account providers may be incompatible with your existing hosting solution. This will clash with your initial setup so before saying yes to a whole new e-Commerce system, check to see if they match.

4. Be cost-savvy
This is the time to really look after your money. Newbie merchants simply can’t afford to let precious dollars slip through their hands. That’s why it pays to be doubly aware of unexpected costs, high recurring fees and sudden penalties.

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