In today’s world, you don’t need to break the bank to open a small business or store. Fortunately, it’s never been easier to enter the business world, and there are over 24 million eCommerce sites to prove it.
However, there are some differences with starting an eCommerce store compared to a physical store, especially when it comes to payment processing. Fortunately, it’s easier than you may think to set up. Here’s what you need to know about opening an eCommerce merchant account in 2023!
Merchant accounts designed specifically for online sellers have several unique features. These include tools and services designed to make online transactions as simple, safe, and effective as possible for both the merchant and the consumer.
Every account and provider is different, but there are some factors you can expect from every eCommerce merchant account. Most importantly, the account allows you to accept payments directly through your website and transfers revenue directly to your bank account once fully processed. No credit card machines are involved.
Moreover, your merchant service provider (MSP) will manage this account, giving you a direct point of contact to answer questions, address disputes, or access your records.
If you want to open an eCommerce store, there are several options for accepting payment, but they aren’t all equal. Here’s why you should consider opening an eCommerce merchant account.
Online sales come with some unique challenges and even potential legal issues. Therefore, online sellers need to have the best possible security measures in place. If you’re selling solely on third-party platforms like Amazon, then this isn’t anything to worry about.
However, if you want to branch out and sell on your own website, then you need the right system. Otherwise, one attack could have disastrous consequences for both your brand and your customers.
By the way: did you know that 60 percent of businesses (according to an Inc.com article) fail within six months after a breach?
Managing your income is a lot easier when you have comprehensive statements from a single merchant account. If all of your transactions go through one system, you won’t have to keep track of, count, or manage your online transactions over time. Of course, this is a major benefit at tax time, especially compared to a physical store accepting cash, checks, and credit.
Manual transactions, transactions across multiple interfaces, and other means of payment come with hefty fees. Consolidating your payment options to an eCommerce-specific merchant account allows you to keep more of the revenue from your online sales.
Working with one merchant account means there are fewer variables to consider. We mentioned this makes tax filing much easier, but it also avoids delays on day-to-day transactions and sales. This will only help improve user experience and lead to faster deposits on your end.
Not all MSPs or banks offer the same deals on merchant accounts. You need the right set of user features, low-cost operations, and ability to integrate to your system. Here’s what you need to know.
Credit cards are the most common payment method for online commerce. Still, will you plan to accept credit and debit cards only? Will you need to accept online bank transfers, PayPal, or layover payment plans?
Also, calculate your budget and see what you can afford for startup costs, transaction fees, chargeback fees, and more. If you want to save money in the short term, start with a credit and debit processing system.
From there, another consideration is volume. You’ll need a system that can integrate with all of your shopping carts and transactions. Some MSPs may have limits, which is an important factor to consider when scaling your business.
If you want a payment processing system that seamlessly integrates with your website, fits your budget, and offers unlimited transactions, then set up a direct merchant account right away. The system will offer behind-the-scenes chargeback management, detailed transaction reports, and unlimited scalability so you don’t have to worry!
Now that you know the importance of having an eCommerce merchant account for your online store, why wait? Without the right merchant account, you could miss out on countless sales. Conversely, the right processing systems will serve to boost your conversion rates and protect your bottom line.
Stay up to date with our latest tips for your business, and contact us with any questions or for help finding the right services for your online store!