Merchant Bank Account?

Hello everyone

Ive been doing quite a bit of EBaying, and now looking at seeting up an online shop, and just trying to work out what I need. Someone told me I need to have a merchant bank account, but couldn't I just use paypal?

Or do you have to have one if you run an on line business?

Hi Harry, welcome to MLF

It depends on what kind of payment mechanism you are putting in place. If want to take card payments online, or offline using a credit card reader, then your bank will need you to set up a merchant account. The merchantt account is used to authorise customer transactions, collect payments and then transfer to your bank account.

There are banking costs associacted with this, but it does give you a much more professional image, as well as allowing you to offer many forms of payment.

You could just use Paypal, which doesn't require a merchnat account, but this can scare customers away.

That said, there are plenty of businesses that only use Paypal, so its down to the type of shop you want to open. You could always put a toe in the water, then apply for a merchnat account at a later date.

Hope that helps.

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Steve

Online Marketing | Free USA Business Directory | My Local Blog | Jobs Vitae

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Be aware that many merchant account companies are requiring that you PCI DSS certify your website if you take credit cards online. You can google PCI to understand what that is and why certification is necessary.

PCI certification is expensive and you may elect to not get a merchant account because of the extra expensive. We use one of the lowest cost certification companies in the business. If you still want to get a merchant account, PM me and I'll tell you who we use to get our PCI certification from.

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Ralph F
Business Text Messaging Service
www.MobileTextingService.com

I have spen many hours researching this subject and paypal is the cheapest and easiest merchant process I could find.

As the setup is free and painless I will be using it to launch my site and I will raise a poll on the forum asking for peoples opinions on the best merchant technically and there personal opinions of the reputaions.


Actually Stev einstead of waiting 2 months for my site lanch how about raising a poll now.

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Hi rfresh

My understanding is that for most online retailors, (ourselves included) that we would fall into the self certification category, ie we are using a third party gateway who is compliant. That said, this isn't something we have been asked to do by our merchant account provider, and as far as I'm aware, this isn't a legal obligation?

Although obviously card details and data security are something all businesses should take seriously, and ensure strict internal controls are in place.

https://www.pcisecuritystandards.org/index.shtml


Be interested to hear from anyone who has opened a merchant account recently, if you did incur extra expense becoming PCI DSS certified.

If they are, then that will surely play into the hands of providers like Paypal and NoChex?

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Steve

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thanyyou for the help. I think I will stick with paypal to startwith but I shall read up on this pcidss stuff.

thanks all

Harry, I would suggest sticking with paypal for now, when you are sure that your monthly take is worth thejump then go down the Merchant route.

Paypal works seamlessly, here is one I have done for a client, Custom Furniture

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thanks, thats a good looking site. I was worried it wouldnt look professional with only paypal, but that one looks great.

I've got a friend who is going to do the site for me, but as a rough idea how much would something like that cost? Just ball park so I will know in the future.

All depends on how much content, but that was within the offer price on my site, came in at £750 inc VAT.

Blatant plug on my part Kip FX Design | Graphic | Web | Print | Prices

Hope this helps.

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Web Design Portfolio | Social Media beats SEO

Hi Harry, thats a little unfair to ask for a quote on a public forum. I would suggest you PM Kip if you want to take advantage of his services.


Edit - Ahh, Kip beat me to it, no worries

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Steve

Online Marketing | Free USA Business Directory | My Local Blog | Jobs Vitae

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If you're here to spam, then expect a ban Copy & Paste monkeys - we're watching you!