Matt

Alright, well I'm almost completely ignorant on this subject and I would love some insight.

If I were to setup a merchant account with my bank how could I use this online for eliminating the middle man, just for the sake of less deductions. Would I have to create my own script that would take their credit card info and manually process it?

I've looked into online merchant accounts but either the rates are rediculously high or don't offer service to Canada. I'm registering my business soon and I would like to have everything setup for when I register.

Any facts or things I should know on the subject would be great, I really need some insight on this so I know where to go next.

Thanks alot guys

Super Mod

First, read through this Merchant Account FAQ I wrote. It has some good information explaining the basics of Merchant Accounts. Next, to answer your questions. You don't normally sign up directly with your bank, but sign up with a specialized Merchant. The Merchant then processes the orders -- through a Gateway -- that you file through them and then sends you the money about three to four days later.

I don't know much about Merchant Accounts in Canada, but there has to be some. You won't be able to escape the high costs, though, until you're doing a large number of transactions per month. The reason that the costs are so high is because it's so risky for a Merchant to do the processing.

Matt

Well here's what gets me; people who own their own business offline.. They dont get an internet merchant account. They would get one through their bank, or somehow set themselves up to process credit cards.. I'm aware that the fees are much lower then one you would find online. So if you could do it offline theres no reason you couldn't do it online.

After reading your article I guess what I'm trying to say is, is it possible to knock the gateway out and do it manually? I dont expect tons and tons of orders just some higher budget projects that I dont want huge deductions from.

I'm just inquiring on how I could get one of these accounts setup with my website, say take in info and process it manually. I mean a large scale company wouldn't usually go through 2CO, or probably a gateway at that, so there must be a way.

Super Mod

I don't think it's possible to bypass the gateway. The gateway is what you send the credit card number, etc., to for processing and authentication before it's sent to the bank for payment. I've never heard of anyone going directly through the bank.

Also, where did you hear that it's cheaper to process credit cards offline rather than online? I never heard that, but it seems like you may be correct there. It would make more sense, though, as the person will have to be present you with (1) a real copy of the credit card and (2) a copy of an ID. This would ensure that there was less room for fraud.