Merchant Account Types & Services
There are two main ways to collect credit card payments online: You can sign up with a company who will provide you with the tools you need to process your customer's payments, giving you direct power over their payments and billing information, or you can use a third-party merchant account that will process their payments for you.
There are many different merchant service providers available today. We have chosen the three we feel are the best in price and service.
Direct Merchant Accounts - Key Points
- You have the power to bill your customers at any time you want for any amount, which requires a lot of responsibility.
- You would have to store your client's credit card information in your own database -- encryption is a must.
- Because you have full control over your client's credit card, this method is a little harder to get started with.
- You may use the merchant provider's API to bill the client's credit card remotely, so your client stays on your site while the credit card is charged.
- If you decide to process credit cards on your site remotely, you will have to use a gateway module to pass credit card information to the merchant providers' credit card gateway.
- Merchant providers charge you a monthly merchant account service fee, but charge a lower per-transaction fee than do third-party merchants.
Third-Party Merchant Accounts - Key Points
- You don't have the power to bill your customers any time you want. Customers need to follow a link with an amount set by you and pay it.
- Merchant Providers store the client's credit card information once you pass it through your billing manager, which prevents you from having to worry about the responsibility.
- Since merchant providers store the client's credit card information and bill it, your client generally must jump to their site during the transaction.
- You will not require any software installation such as SSL or a billing manager, since your site will not store any sensitive information.
- Merchant providers charge you NO monthly merchant account service fee, but they charge a higher transaction fee.
Merchant Account Providers, Fees & Rates
| Merchant Account Provider | CDG Commerce | PayPal | 2CheckOut |
|---|---|---|---|
| Transaction Fees | 2.25%-3.75% + US$0.30-$0.40 per transaction | 2.9% + US$0.30 per transaction | 5.5% + US$0.45 per transaction |
| Monthly Fee | $10 | $0 | $0 |
| Setup Fee | $0 | $0 | $49 |
| Processing Minimum | Yes | No | No |
| Credit Approval | Yes | No | No |
| Bank Account Required | Yes | No | No |
| Withdrawal Method | Bank Deposit (Daily) | Bank Deposit, Debit Card, or Cheque | Bank Deposit (Weekly), Cheque, or Payoneer |
| Works with WHMCS | Yes | Yes | Yes |
| Account Type | Direct | Third-Party | Third-Party |
| More Information | More Information | More Information | |
| Apply Now! | Apply Now! | Apply Now! |
All the merchant providers above work great with our free billing manager.IMPORTANT - iHubNet, Ltd. is not affiliated with the above companies in any way, nor are we partnered with them. This page only shows you information regarding their merchant account services that might help you to decide how best to set up a merchant account. This page may not contain the most up-to-date information regarding fees and rates. We recommend that you visit their websites for the most accurate information.
