RSSOnline Payment Services also protect themselves against any one 'bad merchant' by limiting the monthly dollar amount which may be processed. This is a very important consideration because once the monthly maximum is reached, sales will be lost because the processor will simply stop processing orders.
A somewhat messy solution would be to switch to another provider when the first is maxed out for the month, but a better solution would be to find a provider with a high enough maximum to accommodate all sales. Most providers will increase the allowable maximum after sufficient time (3-6 months) and a number of sales have passed.
| Advantages of Online Payment Services |
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No Start-Up Expense
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Good for Low Volume Sales
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No Credit or Underwriting Requirements
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Easy Online Application and Setup
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Email Notification to Merchant of Sales
| Disadvantages of Online Payment Services |
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Expensive for Any Volume of Sales
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Low Allowable Monthly Volume
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Product Limitations (like adult content)
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Some Are Poorly Designed, Difficult to Use
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Hard to Find and Compare Services
| Similarity between merchant banks and payment services |
The commonality of merchant banks and Online Payment Services is that they and their fees are both hard to find and difficult to compare. The services charging the highest fees bury that information deep in their web sites or don't make it available at all, forcing a phone conversation with a salesperson as the only means of determining fees Sure enough, as a general rule, the harder it is to discern the cost of the service, the higher the cost. Providers with the lowest fees advertise the fact, but again, they don't always deliver.
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