There are about 3 different options among the millions of companies to choose from regarding your payment processors.

1. 3rd Party Processors (Paypal, 2CO, etc.)
2. Local bank (your bank refers you to a MSP[merchant service provider]
3. Go directly through a MSP [merchant service provider]

1. While 3rd party processors have the benefit of working with any website because of their program where they put a link to payment and then return the customer once the transaction is complete, they have at least one universal flaw. The customer usually does not prefer to register with a payment provider and go through all the steps to verify their account before making the initial transaction. Once the customer is finished registering and verifying for paypal (ex.), they've probably forgotten what they came to your website to buy.

There's something known as "impulse buying" which is the prominent reason people buy products online. Every step you take between gaining their interest and the finished transaction is a reduction of impulse (excitement).

2. Local Banks - Local and National banks both farm out their merchant accounts to processors who work with them to provide a real merchant account to you. Since everyone who opens a business usually opens a business checking account, they are on the front lines for referring you, which gains them a substantial cut in profits from whomever they choose to farm out your account to. As a result, the processor who they refer you to have to up the price dramatically to the merchant to make any profit.

3. Merchant Account Providers and Processors. - With a merchant account from a MSP, you can rest assured that you are getting a great price for your buck. The rates are usually lower because of lower overhead and direct rate consultation.

If you are an e-commerce merchant and you have a shopping cart set-up, you are almost ready to go. Finding the right shopping cart takes time and understanding, however you can find free shopping carts if you look hard enough.

Whether you are new to e-commerce or you are an experienced veteran, you know exactly how important your merchant account is to your business. Finding the right domain name, shopping cart, and content are one challenge in itself, then you need to find a cc processor.

Many webmasters have been searching for an alternative to the norm after finding that most banks are charging twice as much as they should.

If you need any help, please don't hesitate to pick up the phone and give us a call.

Take care,

Jacob Reller
Helpmerchants

I like this thread. This is good and usefull.

Thanks...

I wonder... which is the best option from among the three?

Hi Helpmer,

I completely agree with you.You have done an great job.. Such an informative and well formed post!Thanks for sharing that, it was wonderful of you.Thanks for the nice collection of this posts.!!!This is really good information....
Good luck!