If you are planning on starting an ecommerce business then online payment arrangements will have to be made first. Customers who purchase from your site will always pay through the internet. But if you can keep several types of online payment options then they can be benefited and lured to your site. Small businesses accepting online payments enjoy lots of benefits. One such benefit is that customers increasingly accept this convenience and hence your cash flow also increases. Internet is always a speedy service and credit and debit cards are owned by almost all customers. It is hence expected that an online business has to provide an online payment option. If you wish to accept credit cards for receiving online payments then you need to make necessary banking arrangements for that purpose.

Online payments are always vulnerable to fraudulent activities. You need to protect your site from such fraud and prevent miscreants from interfering in your business.

You can accept online payments through the following processes:

Online Merchant Account: This is one of the best options to accept payments online. This type of merchant account is devoid of any kind of third party fees for accepting payments. The reliability factor is high and there is no cause for tension for both parties. If your e-commerce site consists of a shopping cart then this is the best option available for you. The shopping cart system requires special software, a processor, a store and also a secured payment gateway.

Third Party Payment Processor: Those who do not like to have a merchant account can opt for an optional online payment options. This kind of third party processor is very common for most of the merchants who carry out business through internet. With this kind of process you are able to accept payments online without the involvement of any extra charges or obligation. In this case, however, the transaction fees are much higher.

Costs associated with online payments: There are several fees associated with online payments. The banks involved in the process charge higher fees for their services. You need to submit a sign-up fee which would go up to a few hundred dollars. Companies associated with the transaction charge a fixed amount of fees. In fact the gateways involved in the merchant account will also charge fees. But there are defined set of rules and regulations which you need to study before hand.

You as the business owner have to make a choice on the nature of the payment acceptance method you are going to select. It would be wise to consider all options available and then choose the right one keeping in mind your needs and the customer’s convenience.