Choosing a Good Merchant Accounts for Your Ecommerce

Illustration of Merchant AccountIn the ecommerce world was known the name “Merchant Account” or often also called Merchant Services. A perpetrator online business must know the requirement of this service so their online business would service the customer well. Because the customer’s belief depended in their process order satisfaction, from the order step until the product or service being delivered for them.
And the most payment implement is Credit Card, so as the existence credit card in business online and offline became a important fitur obligatory.
The key for this is strategy that was competent in choosing the service provider credit card processing.

FIDS (First Data Independent Sales, Inc), some provider the US sale service that moved in Credit Cart Processing, has been tested in the activity of this offline service. With the Ecommerce technological expansion in the Internet, this company spread his wings as far as the world cyber by offering various fiture interesting to the user and the prospective user service. Merchant accounts that was offered by FIDS is the combination from offline and online service. With the experience in the sale service since 1988, FIDS give the service payment gateway for ecommerce that was proper for the service offline to store option, retail oreder, Phone/Mail, order through to the provisions of the product to support this service. For Ecommerce, FIDS provided setup/programming for Ecommerce.
Had a supply of experiences and these consistencies service, their service met Reviews Gold for Credit Card Processing Business in 2007.
In my parameter, and sometime occasionally became the ecommerce consultant to my clients, there was the important parameter that must be seen in chose merchant account or payment gateway.

1. How It Works

Internet Merchant Account – A Merchant Account is an account with a financial institution or bank, which enables you to accept credit card payments from your clients. The payment gateway actually transmits the billing information to the internet merchant account provider. Unfortunately, most local banks do not provide internet merchant account capability.

The main reason why most local financial institutions or banks do not want to provide online merchant accounts is because transactions conducted over the Internet are totally different from face to face transactions where a signature is required to authorize the purchase. This makes online transactions prone to credit card fraud. Fraud protection should be one of your primary considerations when choosing an internet merchant account provider.

Web Site – Regardless of which merchant provider and gateway service you choose, your web site will need to integrate with your service providers. Most providers include detailed web integration instructions.

2. How Much Does It Cost ?

Understanding the total costs of your merchant provider can be tricky. Remember my Google example – there are more merchant account providers than there are people looking for internet merchant accounts so ask questions and be picky! Typically, an internet merchant account will have three types of costs:

* Up Front Application Fees

* On Going Fixed Fee

* Discount Rate

* Fixed Transaction Fee

* Termination Fees

* Miscellaneous Fees

For simple conclusion, putting it all together. Simple formula to help you calculate your monthly charges:

Total Charges = Statement Fee + Number of Transactions x (Average Sale x Discount Rate + Fixed Transaction Fee) + (Number of Chargebacks x Chargeback Fee)

For example, let us see you sell widgets over the internet. The sales price for each widget is $10. You typically have 100 sales per month and about 5 people request refunds (chargebacks). For this example, let us assume you have signed up with Jones&Jones internet merchant account services and have the following terms:

Discount Rate – %2.5

Statement Fee – $10

Fixed Transaction Fee – $0.30

Chargeback Fee – $15

Using my formula above, your monthly Jones&Jones charges will be:

Total Charges = 10 + 100 x (10 x .025 + 0.3) + (5 x 15) = $140

You can calculate your monthly sales revenue by multiplying your sales volume by your price:

Monthly Sales Revenue = 100 x $10 = $1000

Your internet merchant provider is costing you 14% of your total sales.

3. Making Your Decision

Before you choose and internet merchant provider, understand all of the cost components. Use your current or projected sales data to forecast what your internet merchant account costs will be. Planning ahead can save you time and money.


  1. Saya ingin tau, bagai mana mau dapatkan merchant account untuk saya. Saya ingin membuat pembayaran and menerima pembayaran secara online untuk e-commerce business saya. Kayak menjual di E-bay dan membayar e-bay fee.

    Apa itu merchant account credit card? akan kah saya dapat itu merchat account credit card kalau saya apply merchant account dengan bank di indonesia?


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