- Merchant services such
as eBay and 2Checkout
- Hosted shopping cart
services
- Fully integrated
shopping carts
Merchant Services
Most shopping carts
require you to have your own merchant account and gateway. A merchant account is
a bank account that allows a business to conduct credit card transactions and
the gateway allows the transaction to be conducted over a secure connection.
It’s okay if you don’t have a merchant account or gateway. Merchant service
shopping carts allow you to use their merchant account, gateway and shopping
cart for a higher cost.
Merchant services are
beneficial for very small businesses or those that are just starting and don’t
have a lot of orders. Merchant services provide the merchant account, gateway,
hosted shopping cart and will maintain your customer’s personal information.
They usually require a set-up fee between 50 and 200 dollars, transaction fee
between 30 and 75 cents, and 5% to 10% of each transaction. Because you are
using their merchant account, your customer’s credit card statement will show
the merchant services business name not yours. In some cases, customers will not
recognize the charge and may dispute it.
Merchant service shopping
carts have an administrative interface, which allows you to login to your
account to add products, prices and shipping options. The shopping cart
generates the html for the purchase buttons and you simply copy and paste the
html into your web pages. When your customer clicks on the purchase button, he
is taken to another website to enter the credit card information. This indicates
to the customer that you are a small business. Some potential customers will
abandon the shopping cart rather than enter their credit card information on a
website they know nothing about.
Once your business grows
to the point where you are processing over $1000 a month, it’s more cost
effective to apply for your own merchant account and switch to either a hosted
shopping cart (little or no programming) or a fully integrated shopping cart
(programming required).
Hosted
Shopping Cart
The hosted shopping cart
is a great solution for a small business that is processing over $1000 a month
but does not have the resources to create or customize a fully integrated
shopping cart. Hosted shopping carts are similar to the merchant services
because they provide an administrative interface for you to enter products,
pricing and shipping options. They will generate the html for the purchase
buttons, which can be copied and pasted into your html pages.
Hosted shopping carts
face some of same problems as merchant service carts because your customers will
be transferred to a different website to enter the credit card information. Some
hosted shopping carts allow you to customize the shopping cart so that it has
the same look and feel as your websites. Customizing your shopping cart may
require some programming skills, but it could also prevent customers from
abandoning their shopping carts.
The main difference
between the merchant services shopping cart and the hosted shopping cart is the
name that appears on the customer’s credit card and pricing. Hosted shopping
carts allow you to use your own merchant account and gateway, which means the
customer’s credit card statement will show your business name next to the
charge. This can decrease your charge backs.
If you are using your own
merchant account and conducting over $1000 of transitions each month, the hosted
shopping carts can be less expensive than merchant services. Your merchant
account will probably charge a monthly fee between 20 and 60 dollars,
transaction fee between 10 and 50 cents, and a percentage of the transaction,
usually ranging between 2% to 3.5%. In addition to the merchant fees, your
shopping cart service will also charge a monthly fee between 10 and 30 dollars
and could charge a transaction fee. These fees sound more expensive than the
merchant service option, but if you are processing over $1000 a month and
growing, it’s better to pay flat monthly fees than continue to be charged 5 to
10 percent of the each transaction.
Fully Integrated
Shopping Carts
The fully integrated
shopping cart is a great option for any business that can afford it. The
shopping cart will be dynamic and will have the same look and feel as your
website. The ZIP Baby Potty Training Store is a great example of a fully
integrated shopping cart. Fully integrated shopping carts like this contain
features that are not found in merchant service or hosted shopping carts. For
example, you can discount items, display customer reviews, assign products to
multiple categories, display out of stock notifications, sort products and
prices, and display shipping estimates without requiring the customer to create
an account.
Integrated shopping carts
require advanced programming skills and can often be used with your own merchant
account or with a service that allows you to use their merchant account for a
higher fee. There are many integrated shopping carts available. Free carts
require the most programming skills, but if you don’t have the programming
skills necessary to customize a free shopping cart, there are many companies
that specialize in customizing fully integrated shopping carts.
Your choice of a shopping
cart can have a dramatic impact on your business. Your website is the first and
only impression you get to make so you’ll want to make it as professional as
possible. While shopping for a shopping cart system, put yourself in your target
customer’s shoes and browse the Internet. Review your competitor’s websites as
well as those outside your industry. Make a list of shopping carts that you find
appealing and research them thoroughly before choosing one.
u2surf.net
Website Design |
