3D Secure and its Advantages

When dealing with online credit card transactions, many business owners choose to use ecommerce merchant accounts for their needs. This type of account has numerous benefits, but it has some disadvantages that should be noted prior to signing any agreement with a merchant bank.

Advantages of an Ecommerce Merchant Account

Convenience and Increased Sales - The first two advantages go hand in hand: ecommerce merchant account provides a convenient way for customers to pay and increase sales revenues. Anytime you make it easy for the customers to do transactions you can be sure there will be an increased flow of business. Customers prefer short, simple transactions and become loyal customers when their purchase process is simpler compared to that of your competitors.

Real Time Transactions - Next you have the benefit of real time transactions. In the ecommerce merchant account this facility enables your customers to have all their transactions handled immediately. It also puts the money directly into your business bank account, rather than having to wait days or more for a personal check to clear.

New Dimension - eCommerce merchant accounts add a new dimension to your business by creating a new sales outlet. When you create a catalog on your company's website you give the customers a place to purchase your products any time of day or night from the comfort of their homes. This will, of course, increase your sales.

Disadvantages of an eCommerce Merchant Account

Fraud - The potential for fraud is the greatest disadvantage of eCommerce merchant accounts. You need to have incredible security in place to ensure that your website is safe from people who can steal your customers’ information and use it to their detriment. Also the security should protect the merchant and consumer from fraudulent credit card use. But with Instabill you get online fraud protection for your eCommerce merchant account.

Maintenance - You are responsible for maintaining your website. Most eCommerce merchant accounts do not have web hosting or site maintenance in the contracts. It is up to you, the business owner, to keep the website up and running. There are some merchant banks that provide technical services, but generally it is left to the merchant to handle.

Fees - The fees for eCommerce merchant accounts can go from mild to monumental. There are set up fees, account maintenance fees, annual fees, per transaction fees and percentages taken from each transaction. If you have a high volume of sales you have the potential for discounts and lower rates, but if you have a low volume of sales through the eCommerce merchant account you can stand to lose money during the transactions.

Contract - The agreements with the merchant banks are typically long term and very specific. If you do not abide by the rules for your eCommerce merchant account, then there can be charges.