When setting up payment options for your online business, one of the first things that you need to establish is an Internet Merchant Account. An Internet Merchant Account is an account that allows you to be able to accept online payments directly, specifically debit and credit card payments. While most local banks do not offer internet merchant account capability due to credit card security issues, there are specialized banks and processors that do offer this service. These companies are referred to as merchant acquirers or acquiring banks.
You must understand though, that merchant accounts come with certain costs. The basic fees that an acquiring bank would require are: the upfront application fee which pays for the initial cost of processing your application, the on-going or fixed fee which you would need to pay every month, and the discount fee which is the service provider’s commission for every sale you make. While these would be added costs for a startup business, having convenient payment alternatives in your website will boost sales, and these fees will start paying for themselves in no time.