FREE MERCHANT ACCOUNT

Many merchants today look for accounts that don’t cost them more than their income, as they don’t have a large trade volume. The fully equipped merchant accounts are most useful only to those merchants whose businesses have high volume of transactions and widespread business. Hence, for those small time merchants who end up paying much for almost no benefit to them, there is the free merchant account option. These are generally services that act as a third party credit card processing unit on your behalf, hence not charging you anything.

Using free merchant account will help you save a lot of time on setting up the software to start the accounts, like the internet setup, the customer service options, terminals etc. plus, you don’t have to pay the set-up fees or any other such snags since you are not actually using their services. The third party credit card processing company will function entirely on your behalf, accepting credit cards for you, checking them, processing them, crediting your account and debiting your customers accounts. Once the processes are done, they send you a statement every month, along with your monthly payments that you earned. The third party will keep a pre-fixed percentage of the profits that you make as a charge for services, which is how they make their profits out of the whole setup. Hence, if you don’t sell anything, you don’t pay anything, it is as simple as that.

Most new merchants go in for a free merchant account, because they are only trying to get a feel of how the entire market works. It is like a start up to building the business. Initially you may pay for each transaction made to the third party, but then you don’t incur any set-up fees. Once the business starts getting up, and your sales volume and transactions increase, you can go in for a full fledged merchant account. Then you pay u a large start u cost, but the charges per transaction are reduced largely.

There are many other reasons why one would go in for a free merchant account. Some of them are: -

·         The merchant may not have enough capital to create a merchant account.

·         To avail the benefit of not having to make any minimum usage conditions or costs

·         A free account can be integrated easily into your own website

·         To avoid getting into contracts

·         Certain 3^rd party providers run affiliate programs for your business

·         For international sales

·         No need to have a credit check

The free merchant accounts system is great for new merchants since they are just getting used to the global system of the businesses. However, though these systems have many advantages, they also have certain drawbacks as well.

Advantages –

·         It is free

·         Tracking is easy using online tools to report

·         Certain agencies offer fraud protection and chargeback guarantees

·         Some providers give a savings account option

·         You pay only for the transactions you make

·         no start up costs or installation fees

Disadvantages –

·         since you make less payments, you get limited service from the provider

·         shopping cart integration is limited

·         difficult to create automated receipts and shipping costs

·         integration with your website is limited

·         large transaction costs per sale

Setup a credit card processing merchant accounts to accept credit cards today!