Online Payment

Understanding how online payments work is important if you’re planning to accept payments on your website. This guide will help you choose the right solution and understand the terms used in online payment processing.

We’ll explain the basics of:

• Credit Cards

• Online Checks & Debit Cards

• Digital Cash & Micropayments

• Escrow Services

Let’s break it down so you can confidently make the right choice for your business.

Common Terms You Need to Know

Here are some key terms that often confuse new merchants:

Merchant Account Provider

A company that helps you open a merchant account and provides tools for credit card processing. They may also offer other services like debit card and e-check processing.

Other names:

• Independent Service Organization (ISO)

• Agent

Secure Gateway Provider

Keeps the connection between your website and the payment processor secure.

Merchant Processor

Handles the actual processing of the credit card or check transactions.

Virtual Terminal

An online tool that allows you to manually enter credit card details via your browser. Usually part of a real-time payment solution.

Accepting Credit Cards

Credit cards are one of the most common ways to accept payments online. They are widely trusted and help your business appear more reliable.

Why Accept Credit Cards?

• Builds trust with your customers

• Helps close more sales

• Credit card companies protect buyers (customers are usually only liable for up to $50 in fraud cases)

Online Transactions = Higher Risk

Unlike in-store purchases, online payments are considered Card Not Present (CNP) transactions, meaning:

• You don’t swipe a card or get a signature

• These are treated as Mail Order/Telephone Order (MOTO) transactions

• Transaction fees are higher due to greater risk

What Is a Merchant Account?

A merchant account is a special account that lets your business accept credit card payments. You can get one through a bank or through a Merchant Account Provider.

Things to Keep in Mind

• Not all accounts support online payments

• Some accounts work only with certain payment gateways

• Always ask how the account will connect with your website

• Check the provider’s reputation before signing up

Fees and Equipment

• Setup/application fees usually start at $99

• Some providers try to hide fees in equipment or software sales

• Don’t overpay — many reliable providers charge less than $100 to get started

International Merchant Accounts

If you’re outside the United States, getting a U.S. merchant account can be tricky. You generally have three options:

1. Use a Third-Party Payment Processor

This is often the easiest way for international businesses to start accepting payments.

2. Establish a U.S. Business Presence

You’ll need to incorporate your company in a U.S. state (popular options are Nevada or Delaware).

What you’ll need:

• A U.S. mailing address

• A phone number

• Paperwork filled by a service provider

This can cost around $1,000, but may be worth it for long-term success.

3. Use a Provider That Works with Foreign Companies

Some providers specialize in helping non-U.S. businesses accept payments online. These companies may charge more, but they simplify the process.

Want Expert Help with High-Risk Online Payments?

At Offshore High Risk Merchants, we help international and high-risk businesses set up secure and reliable online payment systems,  including credit cards, virtual terminals, and international merchant accounts.