Would you deal with web-hosting company which hasn't it's own merchant account and uses some form of credit card processor?

Cherry

I own a hosting company that uses a third party processor so I see no reason not to use one.
I have used many hosts in the past who used both their own merchant account and third party processors, and trust me, having a true merchant account is no indication of reliability or good customer service.

I agree with Blue - having a true merchant account is no indication of reliability or good customer service. I know that even some of the larger hosts use 3rd party credit card processors.

As a user, that wouldn't even be something I would think about. I may look at their order process if that is wacky or something, but as for how they are processing the credit cards, no big deal. If they had no credit card options and only paypal, etc., I would simply think they are really small. Just my assumption.

Many people feel very secure with processing systems such as paypal since the merchant never is able to see the credit card information of the user. PayPal is a big convenience to the internet with so many people accepting it and ebay!

As everyone pointed out, the fact that a compny is using a 3rd party processer doesn't mean they provide poor quality service. Out of many things, it can also mean the company would like to cut its costs and possibly even invest it support services, areas where it can see more value for every dollar invested.

I would, however, prefer not to deal with companies that accept PayPal as their only payment solution. Getting a paypal account is easier than a real merchant one, and legal business age is one of those problems. When I see a company that accepts CC, I have at least some confidence the owner was passed through a more serious screening.

Best,

That is a very good point. It is very easy to obtain a paypal account. As of now, I only accept paypal mainly because of its low cost as you mentioned, but I have also been looking into 2checkout and paysystems, I just have to decide which one would be best for me if not both. But until I grow more, I won't be getting a merchant account, but I am looking forward to that day!!!

In 2000 we started with a real merchant account and found it was actually easier and cheaper to use a 3rd party account at that time. Then in the last year we moved back to a real merchant account when we upgraded to ModernBill instead of our manual billing processes. I think it doesn't mean good or bad if hosts use 3rd party billing.

Hi there,
I can see no connection with having a third party payment processor to quality and reliability.

If you purchase a quality car using cash, check, credit card or shells for that matter, it is still a quality car, the same is true with hosting, it just doesn't matter how payment is excepted as long as the host provides quality service and support.

I don’t think it will even cross the mind of the consumer whether you have your own merchant account or use a third party CC processor.

It is in the hosts best interest however to obtain a merchant account, you can get much better deals on your transaction rates

True but if you average our your monthly fees on top of your transaction rates there is a point when a 3rd party is cheaper. Once you are running X number of transactions per month, then it is cheaper.

Most merchant account I have seen have a $20 statement or minimum fee plus a connection fee to be online. What companies have you seen that do not run so steap?

Some clients prefer to deal with well known credit credit card processor company. I would recommend 2Checkout.

There are many reliable companies out there who use 3rd party processors. PaySystems, 2CO, Paypal are some of them. I actually have more customers who prefer the use of paypal rather than any other type of processing I offer them? Why convienience. Just because you are on a 3rd Party Processor does not mean that you are no way "better" than the bigger companies.

I use both paypal and paysystems, but most of our clients lean towards paypal. I have had problems with paysystems and my billing software. Live and learn I guess. I am in agreement with Northtrex. 2CO is the way to go.

Third party can be very cost effective. I try to pass the savings on to you, the client. Doesn't matter how the fees are paid, as long as they are and everything goes smoothly, AND if I can save you money, well, that's a plus