We all know it costs money to make money. Yet after you tally up the cost of an application fee for a merchant account at your bank (which allows you to process credit card charges), monthly fees for the online gateway to the transaction clearinghouse that authorizes each charge, the monthly statement fee, and the bank’s percentage commission and transaction charge on each sale, can a small business still earn a decent profit online?
If you are confident your monthly online sales will be $20,000 or more, then go right ahead and apply for a merchant account and online gateway service. But many small businesses that plan to dip a toe into the e-commerce pool have no good way to estimate their future online sales.
If you start off small, with just a couple thousand dollars or less in monthly online revenues, then paying hundreds of dollars in setup and ongoing charges for an online merchant account and all it entails could consume most or all of your profits.
Paypal Providing Small Online Business Options
June 14, 2006 by Ty | 0 Comments
In Paypal News
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