At first, there was the concept of putting up a business at home. This concept has undergone several changes in recent years. Today, with the emergence of modern technology, online home-based businesses have become the latest talk in town with selling and buying transactions often processed through credit cards.

Online or Internet-based businesses, however, have assumed a somewhat notorious reputation. This is because some of these offer bogus products or services, and have even consequently fooled quite a number of people.

Still, these nefarious online activities have somehow been reduced in recent years. This can be attributed to the introduction of credit cards in online businesses as a method of payment.  These cards enhance credibility and this is significant for many online home-based businesses.

Other than that, transactions conducted through credit card payments are seen as highly innovative. For consumers, they can make purchases without ever going to their favorite specialty store. For business owners, using a credit card helps them extend their services to as far as they can imagine. There are no geographical limitations when transactions are made through these plastic cards.

Yet, not all businesses are really amenable to using credit cards as a payment mode. This is quite understandable because credit card application is one complicated process. If you still have a generally fledgling and struggling enterprise, credit card providers will normally look into your business records first upon receiving the application. They need to seriously consider your financial status before granting your card.

Setting up a credit card payment mode is also not that easy. To set up your card, you have to first open a merchant account. This is basically the account where you deposit all sales proceeds.

Having merchant accounts is a basic requirement for businesses that have plans of using the credit card as their future payment means. When creating this particular account, you can either go to a banking institution or to one of its intermediaries like sales organizations or third party providers.

Merchant accounts obtained through banks are particularly suited for businesses having large sales volumes. These allow businesses faster processing of payments and remittances. It also allows for easier comparison of profits and loss.

For businesses with low sales volumes, merchant accounts acquired through third party providers are more advisable. These account types are less costly as they involve no monthly charges. However, its one disadvantage is that payment processing may require more time.

Either way, merchant accounts are worth considering. This is particularly true if your online business has yet to earn credibility among online consumers and will need the help of credit cards to establish this.

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