Accepting Credit Cards for E-comerce Site

Getting a site up and running is no small feat. Adding the right e-commerce shopping cart is a difficult choice to work out as well. Even when you have those elements nailed, you are not yet finished setting up shop. What about accepting payments? You may have PayPal set up, expecting everyone to have a PayPal account. Reality is quite different, though. Many buyers online prefer to use their credit card, rather than succumb to trusting their money to PayPal. So you, as a merchant, must find a way to meet their needs. Here are a few solutions to accepting credit cards online.


They are clearly the leaders in online payment systems and they are not going away any time soon. Although they are not very easy to work with if you travel often to other countries and run your own business, over all, they are quite easy to work with. The fees do not always match what they advertise, but there is no way to contest it. If you ask about the fees charged on a specific transaction they will repeatedly point you to their fee schedule, even though it does not add up correctly.

You can accept MasterCard, Visa, American Express, Discover, Diner’s Club, enRoute, and JCB.

Google Checkout

With Google Checkout you will get a lower percentage on the fees charged, especially if you are dealing with international customers. However, when you sign up you will have an initiation period of 60 days, during which you will have to wait 10 days for any money from credit card transactions to be deposited into your Google Checkout account. That does not count the days to transfer it from Google Checkout to your bank when you wish to withdraw it.

You can accept MasterCard, Visa, Visa Electron, American Express, and Discover.


It is really too bad that Google Checkout is the only real contender with PayPal, and we see it again when looking at Kagi. They have such a high percentage in fees that it makes it untenable to do business with them. If you sell less than $5000 they charge you 7.99% + $0.75 + 0.75% when using the Kagi Sales Assistant (an in-application module). Add to this the pain of being paid only on the 20th of each month and PayPal and Google Checkout are looking very good again.

You can accept Visa, MasterCard, American Express, Optima, Discover (Novus), Diner’s Club, Carte Blanche, Carte Bleue, JCB, and Eurocard.


Many claim ProPay is a competitor to PayPal, but its annual fee puts it out of the game for many merchants. With two account levels, both $50 or more per year, there is little enticement to sign up with them instead of PayPal. Their rates are 2.29& + $0.25 if you swipe a MasterCard or Visa and 2.99% + $0.30 if you key it in. All other cards are 2.99% + $0.30 whether swiped or keyed in.

Accept MasterCard, Visa, American Express, and Discover.

The Final Word

It becomes simple when you compare the products of the companies that provide credit card processing services. There are really only two choices for any sane e-commerce professional. You will either go with PayPal or Google Checkout. Choose the lesser of the two evils, in other words.

Get signed up with PayPal and begin accepting payments immediately without a setup fee or go to Google Checkout and get running with a slight 10-day waiting period for newbies. The latter offers a lower rate in fees than the former. It is just enough to give Google Checkout the slight edge over PayPal.