|
|
|
|
An introduction to billing & merchant systems.
In addition to your Automation Station account, you'll also need a way to process credit card transactions for your customers. This is done either by having your own merchant account, or by working with a third-party billing system.
This page will serve as a brief introduction of how each method works and will help you decide which one is a better choice for your business.
What is a merchant account?
By definition, a merchant account is a special type of bank account established for a specific business that allows for the settlement of credit card transactions. If you are working online, you'll need a merchant account called a "Card not present merchant account", which means that you will never physically hold the credit card that your customer is using to pay.
In addition to the merchant account, you'll need a payment processing gateway. The most commonly used one (and the one ThirdSphere's Automation Station is compatible with) is called Authorize.net. This "gateway" is what will connect your merchant account to the internet, allowing you to process credit cards online.
The main advantage of having a merchant account is having lower "per-transaction" fees. This works great if you have a considerable volume of sales each day and if you can manage to keep your refund rate low.
The main disadvantages of a merchant account are that setting it up can be expensive and that it is not available in all countries. If your refund rate is high, your bank can close your merchant account and "freeze" your funds; these will remain held until the investigation is over.
If you want a merchant account, you can get one at:
* e-OnlineData
* eCommerce Exchange
* PlanetPayment (Supports merchants not based in the US)
Note: Even if your merchant account is based in another country, the Automation Station requires you to configure it to work with US dollars as its default currency. If you sell to other countries we recommend that you clearly state that your prices are in USD and that you include a link in your website to this currency converter: http://www.xe.com/ucc/
What is a third-party billing system?
A third-party billing system is a company that has multiple merchant accounts and gateway systems and lets you use them (for a fee) to process credit card transactions for your customers. These companies are a great option for many online businesses, especially for those who are just starting out online.
While third-party billing companies usually charge higher "per-transaction" fees than merchant accounts, they don't require a fixed sales volume and understand better how online businesses work (including the higher refund ratio that a brick and mortar store).
There are many different third-party billing companies out there. The most common ones are the following (they all support merchants located around the world, with some countries excluded, please see their websites for details):
* 2checkout.com (Highly recommended!)
* PayPal.com (There are no setup or recurring fees and is really easy to set up)
* PaySystems International / Revecom
* SkipJack
Understanding how it all works...
Now that you know what the Automation Station is and that it requires you to have a way to process credit cards, let's take a quick look at how it all ties together seamlessly, to provide your customers with the easiest online shopping experience.
|
|
|
|
|
|
