If your company is already doing a good job of invoicing your customers, you may be put off by the costs of merchant services, which take a percentage of all your sales. There is much to be said about developing a merchant account system and letting an outsourced company do much of the work of credit card processing for you, so you can deal with more important business issues such as product development and customer satisfaction. It is possible to accept credit card payments over the Internet without establishing your own merchant account. Third party merchants can accept credit cards on your behalf, without requiring a credit check.

Qualifying for a merchant account

Before giving you a merchant account, a merchant services provider will want to make sure that you are a legitimate business that will not leave them liable for fraudulent charges. They will start with a basic background check. This includes a thorough credit history review of the owners or officers listed on the application, in addition to credit references from two to three suppliers.

Providers will also consider the type of credit card transactions that your company performs. Swiping customers' cards in person allows for much less risk of credit card fraud or misunderstanding regarding what the customer is purchasing. Being a higher-risk internet merchant does not necessarily prevent you from getting a merchant account - but it will drive up your costs.

Choosing a merchant service

If your business will be selling over the Internet and you do not have a secure server that can encrypt credit card information, make sure your provider can offer secure ordering through SSL (secure sockets layer, a widely-used web standard for security). Setting up your own secure site is expensive and difficult. Finally, if you are not using a bank or financial company you recognize, make sure you verify that the company you are investigating is legitimate.

Internet Merchant Accounts are used for businesses online. The website is the basis of the business and all transactions are handled therein. These merchant accounts usually have a significant amount of support and security because they are the means for the entirety of the business. Most businesses that have a website can open an internet merchant account, but it is especially helpful for those lacking a physical presence. This type of account can be opened using a form online from the merchant bank.

Online Merchant Accounts are simply accounts that are opened online. These can be opened by most businesses. Merchants that have land based stores and also have online catalogues, benefit from these types of online merchant accounts because they enable the stores to receive orders online in addition to the land based activities. This helps merchants target a broader audience while retaining their regular business status.