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Dr. Ecommerce:

I want to be able to accept credit card payment at my electronic shop. Could you please tell me how to do this and how much of a cut the credit card company will take.
Thank you,

Ben

Dear Ben:

What you want is a merchant credit card account. Most businesses get onefrom the bank. So, the first place to go for more information is your bank. If they cannot provide this service, they should be able to recommend a bank that can. Unfortunately, banks in some areas are still very reluctant to give merchant credit card accounts to Internet shops, particularly new start-ups. So, you may have to try several banks. If it is impossible to set up such an account, you can try contacting credit card services. These are established by third parties and offer merchant accounts, usually at a higher cost than the bank. These services range from very good to virtual thieving, so you should check any company offering such a service very carefully before signing any agreement and handing over any money.

Another alternative is to start your business on an electronic shopping centre which offers a credit card processing service. In other words, the shopping centre processes the credit card payment and then forwards the payment to you, less their cut. Again, quality of shopping centres varies tremendously and you should check with other merchants in the shopping centre for feedback.

Good luck,

Dr. Ecommerce

 

 


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