The nuts and bolts of merchant accounts and e-commerce for the small business owner. What is it, how to get it, and how much will it cost. Atlanta, GA (PRWEB) April 22, 2005 -- In order to understand a merchant account as it relates to online purchases, first you need to know the definition of e-commerce. E-commerce is simply the buying and selling of information, products and services online. To enable your website to sell goods and services, you need a merchant account, assuming you want to accept credit card payments. A merchant account is simply an account that a merchant or business owner has with a bank that allows them to accept credit card orders from customers. What is an Online Credit Card Processor? The credit card processor is a company that verifies credit card transactions. This is done via large networks of computers running credit card processing software they have created. When you make a sale, your terminal dials into their system and presents your Terminal ID and the credit card transaction information. They identify your account from the ID, then process the credit card transaction. Benefits of Having a Merchant Account. What are the benefits of establishing a merchant account? First, you can increase your sales by as much as 100% by accepting credit cards. Also, you get payments faster from customers. Statistics show they also tend to spend more using credit cards. Another bonus to the customer is having a way to track their purchases. During tax time, many credit card companies send out itemized statements of annual purchases. Accepting credit cards offers flexibility to shoppers and more equals more money for your business. Why not establish a merchant account for your business. How Much Does a Merchant Account Cost? Charges are usually two-fold: (1) a set-up fee and (2) a transaction fee. Some merchant account companies offer no set-up fees, but the transaction fees tend to be higher. Set-up fees range from free to about $100 (this is usually a one-time fee). Transaction fees range from as little as 1% to as high as 30%. Many processors also charge monthly maintenance fees. These can run between $10-$15 a month. But there are many simple, quick, all-encompassing e-commerce options (i.e., PayPal) that are less paperwork-intensive and allow business owners to sell products without having to pay monthly maintenance fees. Do a little research to figure out the best e-commerce solution for you and your business image. Securing Credit Card Transactions. Some shopping cart systems want business owners to buy a secure certificate to "encrypt" transactions so the credit card information can be transmitted securely. Many website hosting providers allow their secure certificates to be used as part of their hosting package pricing. This can save hundreds of dollars because you won't have to purchase (and install) a certificate yourself. Your online success depends heavily on how comfortable your customers are when they place an order. Consumers want to see that your site is secure before they supply their personal information, especially credit card and checking account information. The presence of the closed lock confirms their information is transmitting securely. Another symbol is the connected key. (Visit www.InkWebDesign.com for more information on e-commerce and merchant accounts. Contact: Cassandra Black Ink Web Design Airport Center 4854 Old National Highway, Suite 210-D College Park, GA 30337 Phone: 678-643-2668 Web Address: www.InkWebDesign.com Email: e-mail protected from spam bots