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After much consideration you've decided to open your own store online. You've spent months getting your paperwork in order, finding merchandise and designing your main store front, but now you are left with one very important question...how do you accept payments online and what option are available to you?

The trick to setting up an online payment system is making sure your choice is readily available to the average internet user and your target demographic. If you choose a new shopping cart host who only processes Discover credit card purchases, then you could possibly lose out on hundreds of dollars, if not more, of purchases.

One option that is available to you is using an online merchant such as Paypal or Google Checkout. Both give you the store owner, the ability to accept credit cards. Be sure to research transactions fees when choosing an online merchant. In this case Paypal has transaction fees while Google Checkout does not if you also use their advertising service. Paypal also offers your customer's the opportunity to use their Paypal account to pay, while in Google Checkout you don't have an account you keep money in, your customer's will still have to use their debit or credit cards. The only problem with using an online merchant is if you have a person who reports you if they don't receive their item in a timely manner. In some cases when this occurs, Paypal can freeze your account and you won't be able to receive payments or send them.

Another option you have is using a payment gateway merchant such as Authorize.net or Paybyweb.com. Again, you'll want to compare transaction fees to make sure you are keeping as much of your money as possible. Through either of these service providers, you can accept normal credit and debit card payments, along with e-checks which lets a customer pay by check through their own checking account.

Once you've decided which method you'd prefer, talk to the customer service there and find out what they do to protect you from fraud. It's important that you protect yourself as well as your customers from phishing, stolen credit cards and hackers. You'll always want to make sure that technical support is provided to you to ensure that if your website stops accepting credit cards, there will be someone there to help you get your system working again.

Accepting payments online will be one of the most important decisions you'll make and one of the most important features you need to offer to keep a profit and stay competitive. It's not hard to find the information, but it will require research. Don't hesitate to make phone calls and keep a representative on the phone until you get all of your questions answered. Choosing correctly can truly make or break your new online business.

Learn more about this author, Marie J Kelley.
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