Cheap Merchant Accounts
For online business, it is critical for the business owners to receive payments from customers on due time. Traditional cash basis payment no longer applies in online transaction. For this reason, online business owners switched to using merchant account that approximately costs $60,000.
The use of a cheap merchant accounts costs less in receiving payments through bank either credit cards, debits or checking accounts. However, the cheap merchant account is most convenient for a small business or even to a larger scale online enterprise.
In applying for a cheap merchant account, one needs a website published in the Internet; the business name must be on the web site; the products and prices must also be listed on the website; the return/refund policy must be stated on the website; shipping methods must also be provided on the website; privacy policy must also be provided; a customer contact service phone number must also be provided on the website; make sure that the shopping cart works.
The fees that are being charged for the cheap merchant accounts approximately costs $89.00 application fee; a discount rate of $2.59 per transaction; an authorization fee of $.35 cents per transaction; a monthly gateway fee of $5.00; and a $15.00 monthly statement fee. To apply for the cheap merchant accounts requirements are also needed from the client. This includes a social security number, driver’s license number and contact information of the contacts of the business. The banking account and the routing numbers of the checking account used for the business are also required. To make sure of the legality of the business, information about the business is also asked, together with the tax ID, or the social security number, and location information.
Some cheap merchant accounts use common technology in preventing unnecessary purchases. One way is the use of the wireless credit card process and making sure that payments are only done through the phone. The requirement is to dial is a special number and follow automated instructions. It only charges one-time application fee, a discount rate and a monthly charge of $5.00. This is relatively cheaper than other “cheap" merchant accounts.
This technology processes credit cards using any phone, toll-free, and the funds are automatically transferred to the client’s bank account within twenty-four to seventy-two hours. There is no need to purchase a terminal so a business man can be paid anywhere. Other special features of this cheap merchant account are that cancellation of contract is definitely free, unlike in those made by other merchant accounts that bind a merchant under contract obligations.
However there are some that warns businessmen with these cheap merchant accounts. One should really scrutinize the offers made by these companies, because when one starts adding up fees, they’ll find that these are not cheap after all. The best thing to do is study the fee and rate structure of the company that will suit best to the business.