Choosing the right merchant to handle your online payments.

Well, there is plenty of choice, so how do you find the one that is right for you? The key issue is what is acceptable to your potential customers. Given the choice, would your customers use Westion Union or Google Checkout?

Your customers will only part with their cash online if they trust your site with their card details. Some merchants are commonly associated with fraud, and this is an association that you want to avoid at all costs!

Companies such as PayPal and Google are established in the market and are based on a transaction fee system. The main benefit is that if you go through a spell where sales are slow, you’re not still being hit by merchant services fees.

The other option of course is to sign up with a merchant that either doesn’t charge or only charges a small transaction fee. These types of merchant accounts usually have a set up cost and a monthly fee, so may be more cost effective if you have a high online sales turnover.

Some companies process the transactions themselves. Additional security measures are required making the set up costs higher and you will still need a merchant account to charge the card details you receive. For new and small businesses the issue of trust may be a particular concern as customers may not have come across the brand before.

Remember, whatever you or we think, it’s about what your customers think so knowing your customer is essential.