Accepting Credit Cards-Third Party Credit Card Processors

Article source: http://www.articlealley.com/. Used with author's permission.

A third party credit card processor is essentially a company that accepts credit card payments on behalf of you or your company. In other words, your customers' payments are processed through a third party's merchant account, and you are paid by the third party processor (minus a 6% - 15% commission, of course).

There is no need to pay for processing software, a virtual terminal or gateway, monthly fees, etc. You only pay a percentage fee on each sale. A third party processor, is basically a payment gateway and merchant account rolled into one. A third party credit card processor is a company that accepts credit card orders on behalf of other online businesses.
If you intend using a third party credit card processor that combines gateway services with a merchant account, added to the points already mentioned, ensure you also check on monthly gateway fees, AVS costs, and any other added fraud protection you wish to implement.

A few examples of third party processors are Pay pal, 2Checkout.com and Click Bank.

Third party credit card processors are the best option for small and just starting businesses, as well as for international (non-US) businesses where obtaining your own merchant account is too expensive or hard to get. Third party credit card processors are cheaper as long as your total sales are low.

Here are a few things to consider when researching third-party processors:

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