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Message Board >
Should You Get a Merchant Account, Or Not?
Should You Get a Merchant Account, Or Not?
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cramerjohn004
117 posts
Nov 23, 2022
1:14 AM
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In most cases, established businesses who are already trading locally and want to expand online will be more suited to getting a merchant account. Most likely, they will already have an offline merchant account and will expand the remit of that account to add the ability to do "MOTO", which is "Mail Order Telephone Order" processing and simply means that the cardholder is not present at the point of sale.
For micro businesses starting out online selling new software or a new ebook, it is strongly suggested that they begin by testing their marketing using a third party processor. The advantage to the new business is that there's very little upfront cost which means they can test their market cheaply and easily. If sales boom, they can eventually look to reducing the per-transaction cost by getting their own merchant account. If sales are poor, they can at least exit the market without having paid significant upfront costs to get their own merchant how to become a payment processor account, perhaps being tied into monthly minimum fees too.
When the sales volume generated by a business is sufficiently high that the costs of getting a merchant account to process credit cards in the name of the business more than offset the per-item transaction costs incurred by using a third party processor, that's when getting a merchant account makes sense. It does not make sense for micro-businesses starting out online.
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