Do I Need a Merchant Account?
That's a good question. Most serious businesses accept credit cards, however, if you're just starting out, you may want to consider other options like a third party processor like paypal standard, for example.
Here's a good rule of thumb:
If you earn $2,500 or more per month from your website it is generally more cost effective to have your own merchant account. (The break-even point is much lower for an offline account.)
Example: $2,500 from 75 sales
Paypal standard
2.9% of $2,500 = $72.50
$0.30 x 75 = $22.50
Total fees $95.00
Merchant account - online
2.25% of $2,500 = $56.25
$0.25 x 75 = $18.75
Gateway = $10
Statement = $10
Total fees $95.00
