My Favorite Online Credit Card Processing Service

by J.Crawford on March 11, 2010

One of the best easyways to accept credit cards online, and also my favorite way to get paid online might be pay pal. Accepting credit cards online from a websitecan cause liability issues and I’m not into exposing myself to risk, not of that type. With scammer running rampant I think it is important to choose wisely when thinking about accepting other people’s credit card information.

How do I Accept Credit Cards For Free Online?

Most any reputable Internet merchant service that allows you the ability to accept people’s credit cards over the phone or on the Internet are going to charge service type fees.  So I doubt you will find a free way to accept credit cards from your website.  I don’t like fees, you don’t either, If we had the choice we would rather keep the money we earned and not pay a percentage on the money we receive. But with service comes expense. The online credit card processing companies that let you make transactions need to pay for their servers, protecting your clients information, their customer service employees and such. Here is the thing though, if your going to pay service fees to a company every month, do some research into that particular merchant service and be sure your getting something for the fee you have to pay every month.

What is a fair per transaction percentage for a merchant service?

I think this depends on a few details that drive cost in making financial transaction. Details like oversees money transfer, risk to the merchant service, the amount and frequency all determine the per transaction percentages you can expect to pay your processing service.
I’ve sen percentages as low as 1.5% and as high as 5.7%. Just like getting a credit card with the lowest long term APR, you have to do your home work when choosing a good and reputable company to work with.

Are There Credit Card Processing Service with No Monthly Fees?

If you don’t do a large number of transactions every month then choosing a company that does NOT charge a service fee every month or an equipment fee month by month is probably a good idea. I’ve seen online companies charge serval $100 or more per month as a subscription to their service, unless you have a particular reason for doing this don’t. My favorite online credit card processer is free of month to month charges, I only pay a percentage of transation at the point of transfer, so I never see a bill for the service and I like that.

I don’t have an online store and I don’t do a huge volume of credit card transactions, but I do accept money every week from small businesses I own on the Internet. I find that pay pal works perfect for me and I’d say that pay pal is my favorite online credit card processing service to use. Accepting money from advertisers is easy because most of them also have an account and the fees are very low, I think under 2%. That’s acceptable to me as it winds up being under 4 or 5 hundred bucks in fees. One of the other things I might mention is that accepting money from other income streams I have is free through regular bank transfers. I have agreements that automate me getting paid via direct deposit every month for long term advertisers. I like this.

Another nice thing with pay pal is that I can allow someone to purchase a subscription and automatically bill their credit card every month, which is nice because it allows me to skip the bookkeeping part of making money on the Internet. And I do. I get a statement at the end of the year and taxes can be done very quickly using this method.

Do you have experience, good and bad, with accepting credit cards with a processing service on the Internet? What is the best company you’ve found to accept other peoples credit cards?

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