The Value of Credit
Card Acceptance in an Online Marketplace
The shift in
purchasing patterns of consumers is in the direction of simplicity. Many
buyers are turning to the Internet to buy goods and services because it
is so easy to do so. Products are ordered online, shipped quickly, and
delivered right to the buyerвÐâ¢s door. Fast, easy, convenient. Merchants
are driving customers to their websites to avoid overhead expenses and
geographical limitations imposed by traditional brick and mortar
facilities.
Without question, credit cards are the currency of the
Internet. The majority of online purchases are paid via credit cards as
they provides a secure, fast and easy to use method of payment for both
the merchant and the consumer. For this reason, the acceptance of credit
cards is crucial for success in the booming Internet commerce market. The
time delay associated with traditional payment methods is a major
deterrent to online purchases. The time it takes to process an order with
a check payment (receive from the buyer, deposit it, wait for clearance)
adds to the time it takes to deliver the product to the customer. It
reduces incentive to purchase online. Credit cards allow consumers to
make purchases online with instant approval, while providing a high level
of security for the buyer.
Advantages
Consumers
increasingly prefer the no hassle, no pressure, convenience of shopping
online. For those who are still leery of making an actual purchase online
without "kicking the tires", they can still conduct the
necessary research and compile information on various products online..
Businesses who realize the thinking process their customers go through
are able to tailor their websites to meet the needs of their customers
and "upsell" through subtle persuasion and direction rather
than a sales staff. With cookies and other tracking tools, businesses can
follow the course of a customerвÐâ¢s visit to their site and adjust the
site so that the products they feel are most important and want
showcased, are placed appropriately.
How to establish a merchant account?
Establishing
a merchant account can be a relatively simple process. Because of the
risk associated with non-retail businesses, many local banks are cautious
about issuing accounts to them. However, there are independent companies
such as Cardservice International that are willing to extend credit to
these higher risk organizations (start-ups, Internet-based businesses,
mail-order businesses, etc.). The less risk a business is to the credit
card issuer, the easier the process will be.
With the dramatic
increase of online purchasing, it is essential for merchants to offer
credit payment options to their customers in order to remain competitive
in the new virtual marketplace.
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