Third Party Merchant Account Services There are many different ways you can set up a merchant account, including through your bank or through an intermediary. Often these methods are complicated however and require that you prove your financial solvency. Thus for many small businesses establishing a merchant account isn't always easy. Fortunately that's where third party processors come in. One example is Clickbank, a third party merchant account processor that provides a quick, easy and inexpensive setup for just about anyone. Some come with built in affiliate programs you can add to your website. One of the benefits of using a third party administrators is that any small business can usually sign up. There is a downside though many pay less frequently, up to a month in between payments thus you may have to wait 30-45 days for funds to be settled. For many small businesses this leads to problems. Disadvantages Third Party Merchant Account Processors Third party administrators like intermediaries will also charge you a fee. There are various fee structures, including set monthly fees or per transaction fees. Third party processors usually charge fees higher than those that other merchant account providers charge direct customers. This sometimes limits your choices when it comes to a third party processor. You may also find you have to send your customers to the third party processors website to make a purchase, which some worry will make their business look cheap or less professional. You will probably also have to use a pre fashioned order form with the third parties form rather than your own. |
