Internet merchant accounts that integrate with a payment processor or payment gateway can help you accept credit cards online with a virtual terminal. Online merchant services like PayPal and Authorize.net make internet merchant accounts affordable.

While a traditional merchant account is more about the payment processing and "capturing funds" from credit card transactions, internet merchant accounts offer more. These are accounts that help you manage your online storefront. Internet merchant accounts may provide a variety of services:

• Payment processing: This is, of course, the main point of all internet merchant accounts. The merchant account provider facilitates the transfer of money from a customer to you when the customer uses a credit or debit card. This can happen online as well. A merchant account can process credit and debit card payments (and ensure that the money is deposited into your business account) from a variety of sources.
  
• Shopping cart program: Some internet merchant accounts also provide shopping cart programs and software connected to your payment processing. This means that the company sets you up with the software that makes it possible for customers to choose items in your online store and put them into a "shopping cart." Then the program helps the customer "check out" and make the payment.
  
• Web design: While not all merchant accounts offer this service, many integrated merchant accounts are starting to include Web design services. This means that it is possible to have the merchant account provider help you set up an online store – from how the site and product pictures look to setting up customer reviews and more. 
  
• Web hosting: Web hosting is when someone else – who owns a server – puts your Web site on the Internet. The Web host makes sure that your business site is taken care of technically, and can also perform other duties. Some integrated merchant accounts will host your Web site on their server, and make sure that things run smoothly.

Building an online store with an internet merchant account

If you are looking to build a fully interactive online store for your business – one that makes use of cutting edge ecommerce technology – it might be a good idea to look into integrated merchant accounts. This is one of the easiest ways to ensure that everything on your business Web site is compatible.

Trying to add different products and features piecemeal can make for difficulties. This is because programs and code may come from different sources. Sometimes, what comes from one source does not work well with what comes from another source. This can cause problems on your business Web site, and turn customers off. Integrated merchant accounts can get rid of this problem.

If you are interested in a Web site redesign, or if you are just starting an online store that is fully interactive, it might be a good idea to use an integrated merchant account.

Costs of internet merchant accounts

It is true that most integrated merchant accounts cost more than traditional merchant accounts. But this is because there are so many more services involved. For a truly integrated ecommerce solution from an integrated merchant account, you may have the following costs:

• Hosting fees: It costs money to have someone host your site. It is true that there are free Web hosting services available, but you generally get what you pay for. The poor service and reliability in turn makes your business look bad. For most businesses, especially those that are relatively busy, it is worth it to pay someone for hosting.
  
• Web site maintenance: If you hire someone else to maintain your Web site, it will cost money. You business site should be regularly updated, and changes should be made periodically. You can do this in-house, but it can be time-consuming. Integrated merchants accounts that offer this service can make things easier for you.
  
• Web site design: This is usually a one-time fee that you pay for the basic design of your Web site.
  
• Web site setup: If the merchant account provider builds your business Web site, there is usually a fee. Building a good Web site takes time, effort and expertise.
  
• Software program costs: You may have to buy or lease the use of software for such things as shopping carts and other ecommerce tools.
  
• Standard merchant account costs: In addition to the Web development related costs, you will still need to pay the standard merchant account costs that include such items as discount rate, transaction fees, statement fees and more.

However, it is possible to get all of this for a reasonable rate, and in some cases having it all bundled together from one merchant account provider can result in discounts.

MERCHANT ACCOUNT GLOSSARY TERMS