Like mobile credit card processors, third-party providers abide by the PCI Data Security Standard and use websites that feature SSL encryption, which provides an extra layer of protection for sensitive credit and debit card information.
As with other credit card payment processors, the cost of using third-party online credit card payment processors can vary greatly. One of the reasons many small businesses like third-party processors is the lower setup and monthly fees. The transaction fees, however, are typically higher than those charged by merchant services providers. Most third-party processors have a tier system, in which transaction fees are higher on smaller amounts of monthly sales and go down as monthly sales go up.
The major benefit of using a third-party processor is that businesses don't need to get merchant services approval. For entrepreneurs with bad or no credit, finding a merchant services provider that will accept them can sometimes be a difficult process, making online credit card processors a great alternative. Setup is also fast; it can be ready within a day or two. There are several disadvantages, however. In addition to transaction fees that are higher than those of most merchant services providers, there is an increased chance that a customer will dispute the charge. This is because the name of the third-party processor — not the business — shows up on their monthly credit or debit card statement. Credit Card Online Processing.
