Are you the owner of a home-based business that wants to be able to accept credit card payments from clients or customers without all the high fees that usually come with it? Well, thanks to e-commerce and the internet, you can now.
Options for businesses that are run from home
You can find out that many merchant account providers now have special packages for home-based businesses if you do the right research. You know your business better than anyone else. So, you should look into all of the options carefully before deciding how to accept credit card payments for services. Even though there are pros and cons to think about, being able to take credit cards from clients and customers is a huge convenience for both of you.
In the past, it was hard and took a long time for people with home-based businesses to get paid by clients or customers. With a merchant account, you can now accept payments through a bank, an independent sales organisation, or a third party like PayPal. A real merchant account can only be set up by a bank or an independent sales organisation after a home-based business has been approved. There needs to be an underwriting process, and it will also use your personal credit score, which will be looked at and judged. Many companies that offer merchant accounts have high approval rates and special options for home-based businesses.
Getting Money From Payments on Credit Cards
When the process is done, the money from credit card payments can go straight into the account of people who run home-based businesses. Even though the fees charged by an Independent Sales Organization or a bank are not as low as those charged by a third-party provider, they are often worth it to be able to accept credit cards. With more sales, Independent Sales organisations or banks will charge you less in fees compared to third-party providers. This gives you another reason to grow your business.
Other Service Providers
When you use a third-party provider, the money will go into the merchant account. You can then move the money to your own account. The whole process could take a few days. Also, if you use a third-party provider, you run the risk of never getting the money from your transactions because many of these businesses are scams.
Banks Set Up Merchant Accounts
A merchant account through a bank has both good and bad points. Some advantages are that banks are seen as safe and reliable, and the fees for setting up a merchant account are much lower for business owners who have been in business for a long time and have good credit. Many banks don't like to give merchant accounts to businesses that want to take credit cards over the internet. You will have to go and talk about your business, your goals, and why it would be good for you to be able to accept online payments. If there are any charge backs, banks are more likely to close a merchant account.
Organizations that sell on their own
Independent Sales Organizations are often used by business owners with less than perfect credit who want to open a merchant account. Independent Sales Organizations get a merchant account through a bank. Independent Sales Organizations will work with businesses that want to accept payments online, even if they are high risk. These organisations will charge higher fees, and you will need to keep an eye on them to make sure you don't pay the same fees over and over again. However, they can be a good option for people and businesses who can't accept credit cards in any other way.
There are now a lot of merchant accounts for people who run businesses out of their homes. Most of them are approved within 24 hours. Most merchant accounts no longer charge fees to apply, set up, pay monthly, or pay annually. Be sure to find out right away if there are any fees involved in getting a merchant account.
