| An e-commerce web hosting merchant account | | | | a merchant-account. |
| enables your online business to accept credit card | | | | For online businesses that have a sales projection of |
| payments. A merchant account provider transfers | | | | more than $5000 a month, merchant-account |
| payments made from your online business | | | | providers may require you to provide documents |
| transactions into your bank account, with a small | | | | such as tax returns; proof of partnership, |
| percentage taken off for every sale.A | | | | corporation, nonprofit or limited liability status; |
| merchant-account is a must for e-commerce web | | | | checking account statements or previous trading |
| hosting users because it allows their customers to | | | | statements. Trade references may also be required |
| pay through credit cards. It can also be used | | | | from you as well. |
| alongside payment gateways and shopping cart as | | | | Compared to a physical business, it is more difficult |
| well. Moreover, a merchant account is useful in | | | | for an online business to get acquire a |
| transactions both by telephone or face to face. In | | | | merchant-account because there are more risks |
| e-commerce web hosting, a merchant-account | | | | involved as regards to transactions made through the |
| serves as the third party between the credit card | | | | Internet. There are three kinds of risks that online |
| processors and the website. It can be used for | | | | businesses present when getting a merchant |
| purchases manually submitted by the website owner | | | | account, one of which is credit risk. Merchant-account |
| or entered by the customer. Simply put, a merchant | | | | providers look carefully as to how much an online |
| account is the reason why you get paid for every | | | | business might owe them in future time. For instance, |
| sale you make. | | | | the credit risk is relatively low for a new business |
| Accepting credit cards online is important because | | | | that incurs monthly charges of $5000. Simply put, a |
| consumers tend to spend more using their credit card | | | | business's credit history is a primary factor in the |
| than other modes of payment. In fact, the use of | | | | merchant account provider's decision-making process. |
| credit cards for online transactions has been proven | | | | Another type of risk that merchant-account |
| to increase profitability by as high as 52%. | | | | providers put the biggest concern is fraud risk. As |
| Those who are new to e-commerce web hosting | | | | much as possible, merchant account providers want |
| may be swayed by several merchant accounts | | | | to make sure that they incur very little chargebacks |
| claiming to be the best but actually aren't. If you are | | | | from fraudulent credit card transactions. This is |
| looking to get an e-commerce web hosting merchant | | | | because if a customer demands a charge on the sale, |
| account, make sure to look out for ridiculously high | | | | the bank is required to refund the money. The |
| transaction fees and hidden charges. | | | | refund is passed on to the merchant account |
| There are some e-commerce web hosting providers | | | | provider. Finally, it is the merchant that shoulders this |
| offering cheap merchant accounts but slap with you | | | | loss. Newer online businesses are said to be at a |
| fees. It makes sense to get a plan for your | | | | higher fraud risk. |
| e-commerce web hosting needs especially if you are | | | | Contingent liability is another type of risk that not |
| doing heavy business a month. You might want to go | | | | only includes fraud risks but other risks related with |
| with a plan that has a higher cost per month but with | | | | unforeseen marketing circumstances. Businesses |
| a lower transaction fee. | | | | offering lifetime service guarantees have a higher risk |
| To get a merchant-account, the business owner | | | | of contingent liability because the merchant account |
| should meet certain requirements set by the bank. | | | | provider can be passed on the liability should the |
| Merchant account providers set certain requirements | | | | business close. |
| depending on the size of your business. For one, your | | | | There are various e-commerce web hosting |
| online business should not have appeared on the | | | | providers that you can find offering |
| MATCH file, which is the file list for terminated | | | | merchant-account services. There are a number of |
| merchant accounts. | | | | e-commerce web hosting plans that enable you to |
| Similar to a credit-investigation institution, the MATCH | | | | get free domain registration. Various |
| file contains information about online businesses that | | | | merchant-account providers can help you find the |
| have flunked in handling their merchant account | | | | right domain registration for your online business. |
| processing responsibilities properly. If your name | | | | Merchant-account software will be needed to run |
| appears in the MATCH place, you must get rid of it | | | | online transactions, aside from your shopping cart. |
| by working with the company that put you on the | | | | Many e-commerce web hosting services offer |
| MATCH list. Otherwise, you cannot be approved for | | | | software that is payable on a monthly basis. |