Here we need to have a basic understanding of what Third party credit card processing is and what it implies. Why do we need these third parties? We all know that a key to online business and e trade or ecommerce is accepting cards as a mode of payment. Without this it is very difficult to conduct online trade successfully. This article explains the basic concept of how these cards are accepted in online trade.

In order to accept various credit or debit cards such as Visa, MasterCard, Discover or American Express you need to have the software which enables you to accept cards. These are many software’s or e solutions for the people looking to sell and trade online. This software is called a merchant account. This merchant account can be set up by the merchant account provider and installed on the traders website where you can directly accept payments. A payment gateway is required through which processes the merchant account processes payment and checks the limit or credit available for the perspective customer. Most merchant accounts are expensive and require a lot of research, time and energy. It is important to get the most out of you online ecommerce business to select the right merchant account provider.

In order to avoid the hassle of shopping for the perfect merchant accounts, use a third party credit card processing company. They are the most hassle free and convenient ways of conducting business on the net not to mention less expensive. The third party credit card processing company is, as the name suggests the company which actually accepts online payment on your behalf. You don’t need to have a merchant account or any expensive software in order to accept online card payment. The third party company does it on your behalf. They charge a rate either per transaction or a single percentage of monthly transactions. Instead of paying for a software and shopping for a merchant account that will have an enormous upfront cost, third party processing allows you to only pay for how often you use their service. With a third party credit card processing company, who accepts payment on your behalf, you save out on a lot of money and pay per transaction on every sale. There are various third party credit card processing companies available, we recommend using First Data as your merchant account and contact us today in order to assist you in making that happen.

However there are various factors involved on the basis of which it can be decided on what is more profitable, owning your own merchant account or using services of a third party credit card processing company. It is a never ending debate and depends on company to company on the basis of their needs and requirements.

Hence it can be concluded that third party credit card processing company enables one to accept credit card payments online without having your own merchant account. It is best for those who cannot immediately afford to invest in a merchant account.

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