We at Cart32 receive a number of phone calls from clients asking how they can accept credit card payments. This is a common question because the main goal of having a shopping cart software on your site is to make money. Although there seems like many different options, there are two main categories of ways to receive funds when accepting payments online.
- Merchant Services Account
A Merchant Services Account will allow you to process credit card transactions directly on your website.
- Alternative Payment Methods
An alternative payment solution will allow your customers to shop on your website, but place their payment information through a third party like: PayPal, Google Checkout, or Checkout by Amazon.
Having an alternative payment method in conjunction with a merchant services account is the best solution for an online business. There are a lot of shoppers out there who have been burned when making an online purchase, so potential customers can be leery when giving out personal information to a company they are unfamiliar with. Offering an alternative payment solution can help ease a customer’s mind when they go to checkout on your website. Cart32 provides an online shopping cart integrated with PayPal, Google Checkout, and Amazon Payments.
I took the time to look at the rates available with each of the companies and they offer the basically the same pricing model:
|Monthly Sales||Fees Per Transaction|
|Less than $3,000||2.9% + $0.30|
|$3,000 – $9,999.99||2.5% + $0.30|
|$10,000 – $99,999.99||2.2% + $0.30|
|$100,000 or more||1.9% + $0.30|
The pricing structure between the three companies is very similar. There are a few differences, so depending on your average ticket item one maybe a better deal than the other. I highly encourage you to research each solution to figure out what the best choice is for you and for your customers.