Taking payments online can be very confusing, HostGator recommend you to read the merchant comparison page for both prices and information on the different ways to obtain a merchant account.

There are two main ways to collect credit card payments online. You can get a merchant account yourself, or you can do a third party merchant account. There are many different merchant service providers available. HosGator have chosen three who they feel are the best in price and service – Paypal, 2checkout, Gotmerchant.

Having your own merchant account gives you great flexibility and benefits. Your customers will not be required to sign up for an account through a third party (such as Paypal) to pay you for your products or services. You can take credit cards through many methods, such as over the phone, Internet, in person, wirelessly and by fax.

Getting a merchant account also comes with countless benefits, and it will generally cost you less than a third party account. Most companies provide 24/7 customer service for immediate assistance. You will usually have less issues with the risk department since your application for an account goes through an underwriting process before getting approved.

You can also provide a much more professional image, such as having your own business name and phone number show up on your customer’s credit card billing statement.

A merchant account can provide a seamless integration with your web site, with features such as collecting credit cards without having the customers leave your web site.