Resource Links for Internet Marketing
3rd party merchant account
What is 3rd party merchant account?
To do business online, you need to have the ability to accept credit cards over the web. If you don't want to have your own merchant account, then you can use 3rd party merchant account to accept credit card instead.
Advantages of using 3rd party merchant account:
- No Application Fee
- No Annual Fee
- Free Shopping Cart
- No monthly minimum fee
- No gateway fee
- No gateway licence fee
- No termination fee
In general, 3rd party merchant account processing company charge a one time setup fee ranging from $49.00 to $79.00. And many do not have a minimum monthly fee requirement. This mean after your 3rd party merchant account is approved, and if you do not have any sales for that month, you incur no fee for that month.
When you make a sale with your 3rd party merchant account, you will be charged a transaction fee, ranging from $0.30 to $1.00, and a percentage of your sales price as their commission. The percentage ranges from 3.5% to 12.50%.
Integrating your 3rd party merchant account to your web site is pretty straight forward, and in most
cases, you just simply provide a link from your web site, and your 3rd party merchant account processor will take it from there.
3rd party merchant account processor also acts as an alternative processor. Having a 3rd party merchant account processor let you continue
processing customers' orders in the unfortunate event that your own provider closed your merchant account without notice.
Disadvantage of using 3rd party merchant account processing company:
You can not always make the processing site looks like your own web site. Also they will let your customer know that their credit card statement will shows the 3rd party merchant account processor's name instead of your company name.
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