Free merchant accounts - how to accept credit cards online with no ecommerce merchant account needed.
You don't need an expensive regular ecommerce merchant account to start selling your products to Internet shoppers today. If you want the least expensive and easiest way to accept credit cards online, take a look at "free" merchant accounts - 3rd party credit card processors.
Only large volume trader would benefit from having their own ecommerce merchant account. With a free merchant account, you'll avoid the up-front expense and time required to set up ecommerce software, internet merchant account, customer service and more.
3rd party credit card processors are companies that accept credit card orders on behalf of other online businesses. They check the cards, process them and send you a monthly payment for the amount you are owed. They make their profits by taking a percentage of your transactions. If you sell nothing, you pay nothing.
Main reasons to use a free merchant account...
- No need to pay for expensive processing software, a secure server, customer service fees, monthly gateway fees or minimum transaction fees.
- With some of free merchant accounts there are no setup fees or monthly fees.
- International sales.
- No credit check.
- Some of 3rd party credit card processors can run an affiliate program for you.
- You can start accepting online payments within minutes.
The only disadvantage is that the credit card processors charge you a few extra percentage points on transactions in comparison to having your own ecommerce merchant account.
Perhaps the best way to look at using a free merchant account is to consider it as a stepping stone for your business. Initially you'll pay more per sale but with no setup fees. Then, if your business is successful and you perform a lot of high volume sales, investing in a real ecommerce merchant account for your company will be essential - you'll pay a large setup fee, but then pay less per sale. Here are the most important things you should consider when searching for the right 3rd party credit card processor...
- Setup fee - a fee that is charged to activate your acccount.
- Transaction fee - a fee charged for each credit card transaction completed.
- Reserve - many credit card processors temporarily hold 5-10% of your profits to use against future returns or chargebacks.
- Ordering alternatives - some free merchant accounts allow you to collect payments via online checks, over the phone, by fax or mail.
- Restrictions and limitations - do they handle only tangible goods, services or software? Is there a minimum and a maximum price that you can set for your product or service?
Some Web hosting services offer free merchant accounts along with their paid hosting plans. Take a look at Bizhosting. It provides everything a business owner or individual needs to set up an online shop including a free merchant account and automatic credit card processing.
Bizhosting even offers a Free package which allows you to try out the service - it includes limited-feature business Web hosting, minimal site building tools and banners at the top of each page.
Free Credit Card Processing
Free credit card processing - 3rd party credit card processing companies that can accept credit cards and online checks on your behalf - processing fees, extra costs and other details.
Take a look at 3rd party credit card processing companies if you want the least expensive and easiest way to start selling your products or services on the Web. They are companies that accept credit card orders on your behalf without requiring you to have your own merchant account.
Free credit card processing services are excellent if you're just starting out. Instead of paying for expensive credit card processing software, a secure server, customer service fees, monthly gateway fees, minimum transaction fees, and the like, you'll simply pay a percentage of the sale price of each product. Some of 3rd party credit card processing companies can run an affiliate program for you. It'll help you in promoting your site.
A lot of free credit card processing services can be found all over the Net. The list below includes only those 3rd party credit card processing companies that have been in business quite a while, are established and most often mentioned on the Web...
CC Now
This credit card processor focuses on selling tangible merchandise that will be shipped to online shoppers.
| Setup |
Free |
| Orders By |
Credit cards, PayPal |
| Monthly Cost |
USA - $9.95 + 9% of your total sales in excess of $100.00
International - $11.95 + 11% of your total sales in excess of $100.00
(during the initial 30 day trial period you won't be charged a $9.95/$11.95 monthly fee) |
They issue checks in US Dollars: $4.
Direct Deposit (USA only): free.
Wire Transfer: $40.
Reserve Funds are used if your length of sales history with CC Now is less than 3 months and sales earnings exceed $1000 in one semi-monthly pay period (see Web site for more details).
Payments twice per month (you can specify a payment threshold amount).
CCBill
This free credit card processing company accepts customers who sell Web site content or services. It offers recurring billing and referral program.
| Setup |
Free |
| Orders By |
Credit cards |
| Transaction Fees |
14.5% |
| Fee ($5/$20/$100 item) |
$0.73/$2.90/$14.50 |
Only issues checks.
CCBill holds 5% of the total revenues for a period of 26 weeks.
Payments every 7 days.
iBill
iBill helps you sell tangible or intangible products. It offers recurring billing and affiliate management. iBill processes payments with a minimum of $2 and a maximum of $100 per transaction.
| Setup |
Free |
| Orders By |
Credit cards, online checks, 1-900 phone billing |
| Transaction Fees |
Credit cards (US only): 15.19% for up to $10,000 total revenue for billing period. Graded reductions for increases in volume.
Online checks: 15%.
Telephone billing: 20-35% |
| Fee ($5/$20/$100 item) |
$0.76/$3.04/$15.19 |
See Web site for more details.
They require you to send fax to sign-up for the service.
iBill holds 10% of all transactions as a reserve for 6 months.
A fee of $15 per transaction is assessed with each chargeback.
Payments twice per month.
ClickBank
ClickBank accepts customers who offer digital products and services that are delivered entirely over the Internet itself (via Web pages, files, or email). Your products are promoted through their network of over 100,000 online affiliates. You select an affiliate commission percentage in advance.
| Setup |
$49.95 |
| Orders By |
Credit cards, debit cards, online checks |
| Transaction Fees |
$1 + 7.5% |
| Fee ($5/$20/$100 item) |
$1.38/$2.50/$8.50 |
Only issue checks. Charge $2.50 to process and send check.
Withhold 10% of each check which is released after about 90 days.
Payments twice per month.
ShareIt!
This 3rd party credit card processing company helps you sell software and shareware via the Internet.
| Setup |
Free |
| Orders By |
* Credit cards, money orders, bank/wire transfer, check, cash |
| Transaction Fees |
$2.95 + 5% or
14.9% but not less than $2.50 |
| Fee ($5/$20/$100 item) |
$2.50/$2.98/$7.95 |
You can choose between US Dollars, Euro and Pound Sterling for payment by bank transfer, check, or direct deposit in the USA.
Fees for issuing monthly payments to you:
Transfer to your account (bank transfer): $2 (Germany = free)
Mailing a check: $5 (USA = free)
Direct Deposit (USA only): free
Glo-Bill
This free credit card processing company accepts customers who sell membership. You can set your prices between $1.95 and $59.95. They also provide you with a referral program.
| Setup |
Free |
| Orders By |
Credit cards, online checks, phone billing |
| Transaction Fees |
15.95% |
| Fee ($5/$20/$100 item) |
$0.80/$3.19/$15.95 |
Only issue checks.
Glo-Bill holds 5% (10% for earning over $5,000 bi-weekly) of all transactions as a reserve for 6 months.
Payments twice per month.
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