eCommerce Merchant Accounts – Your Online Shopping Payment Processing Solution

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An eCommerce merchant account is required in order to accept credit cards as payment for your online businesses. eCommerce merchants will continue to see exponential growth in the coming years as online shopping increases in popularity/convenience.

Working with a payment processing provider can significantly benefit your eCommerce business as you will need reliable payment processing solutions and secure platforms.

eCommerce merchants can be considered high-risk and will therefore need a high-risk merchant account. This may be surprising at first, as you might not think an online business should fall under a high-risk category.

There are a few reasons why eCommerce can be labeled high-risk, and we will be taking a closer examination into these reasons later on.

Corepay boasts over two decades of high-risk credit card processing experience and understands the complexities of eCommerce.

One appealing factor for eCommerce businesses is that you can set up a business with limited capital yet still be highly profitable in a short amount of time.

Note* If you’re currently running your ecommerce business from Shopify, check out our Shopify high-risk merchant accounts.

Consumers are becoming reliant on using online shopping platforms, and a recent study conducted estimates that 95% of all purchases will be made online by the year 2040.  ecommerce provides endless possibilities for businesses, especially as we continue a shift towards online shopping from the standard brick and mortar retail approach.

U.S. eCommerce merchants saw a 44% rise in sales in the year 2020, and that number is expected to increase again in 2021. 

In 2020, consumers spent 861.12 billion with U.S. merchants.

Whether your business is brand new or has been around for decades, it must conveniently accept as many forms of payment as possible. Alternate payment options such as cryptocurrencies, PayPal, Apple Pay and Amazon Pay are some of the more popular alternative payment solutions. Ensuring customers can pay with their preferred payment method helps keep them at your store, and away from competitors. Additionally, even if your company has been traditionally brick-and-mortar focused, it is crucial to also have an online store component. Corepay will make online payment processing a reality for your company.

Applying For An eCommerce Merchant Account

eCommerce processing solutions

Regardless of you being relatively new to the eCommerce world and looking to start processing payments, or an established eCommerce merchant, Corepay offers highly competitive rates and exceptional payment processing solutions.

Applying for eCommerce payment processing solutions is as simple as filling out an application and speaking with the payment service provider you are looking to partner with.

At Corepay, we highly recommend comparing rates and services of several payment service providers to ensure you are making the correct decision for your eCommerce business.

Not all payment processing providers are equal, and it is in the merchant’s best interest to make sure they’ve found the right fit.

Once you apply with Corepay and are pre-approved for your eCommerce merchant account, you will be assigned an account manager at Corepay who understands your business.

We make the process as smooth as possible, and will answer any questions you may have about your account throughout the process.

We will determine the status of your eCommerce merchant account and whether you will need a high-risk account or if you qualify for a low-risk merchant account.

When applying for your eCommerce merchant account, you will need the following:

  • Certificate of incorporation
  • Shareholder certificate
  • Six months of processing history
  • Business & financial history/records
  • Copy of driver’s license/passport and a utility bill of someone with 15% or more ownership in the company
  • Fully compliant website
  • Voided check/proof of bank accounts
  • Monthly volume
  • Average ticket price

Prior credit card processing history, including chargeback/fraud performance, helps establish which type of account you need and the solutions that make the most sense for your business.

When applying for your eCommerce payment processing account, the more information that you provide us with, the faster the process will be. Our goal is to have your account up and processing payments as quickly as possible, and usually within 24 hours. 

Corepay eCommerce Payment Processing Solutions

Ecommerce merchant solutions

Corepay is proud to offer the following: 

  • eCommerce merchant account approvals within 24-72 hours
  • Waived application fees
  • Waived set up fees
  • Waived annual fees
  • Risk mitigation through Order Insight and our partner product, CB-ALERT & traditional chargeback alerts
  • Maximization of approval ratios
  • Low-risk rates from $99/month and $.05 per transaction
  • Affordable high-risk rates starting at a blended 2.95%

Corepay understands that digital payments are intrinsically tied to the success of eCommerce businesses. Having a variety of payment options with optimal security is a must for successful online companies.

An eCommerce merchant account allows businesses to process payments. An account with Corepay guarantees transparency and top-notch security/processing solutions for your business.

Encrypted payments are another must-have when it comes to eCommerce payment processing. Having secure processing ensures both your business and your customer’s account information safety.

Corepay has a PCI-Level 1 secure payment gateway monitored around the clock and regularly tested for optimal security.

Our eCommerce payment gateway, Netvalve, also supports full payment tokenization, including recurring billing.

Online businesses need to have fast and secure payment solutions. On top of this, eCommerce businesses need to track their transactions and issue refunds to customers swiftly.

When your eCommerce merchant account is pre-approved, no technical skills will be required for integration. Corepay makes integration as seamless as possible, and it’s done via API.

Different Types Of eCommerce Merchant Accounts

types of eCommerce

The sky’s the limit when it comes to eCommerce in today’s market. There are many different types of eCommerce businesses, leading to various options for eCommerce merchant accounts.

Below are the four different types of eCommerce businesses:

Business To Consumer (B2C)

eCommerce businesses that sell goods or services to an individual consumer are considered business-to-consumer operations.

An example of this is someone purchasing a guitar from an online retailer. They go online, find their guitar, and purchases it; therefore, this is a business-to-consumer relationship.

Amazon is the largest B2C operation globally, with over 150.6 million users on their mobile app in 2019.

Amazon currently has a market value of $1.4 trillion and is trailed by Walmart, with Walmart having a market value of over 340 Billion.

The eCommerce business has exploded with the pandemic and brick and mortars dancing with the unknown in the last year. Brick and mortar businesses have shifted their entire business model and have started to exclusively focus on eCommerce.

When this is done correctly, businesses can take advantage of global sales by bringing in consumers interested in their goods/services.

Business To Business (B2B)

Business to business is when a company sells a good or service to another business. An example of this would be an IT company selling its services to another business.

This type of business is prevalent and is rapidly growing in recent years. As eCommerce continues to grow, B2B will become more and more popular. 

Payment processing providers are also considered B2B as they are selling services to other companies.

Consumer To Business (C2B)

Consumer to business is another popular eCommerce business model. C2B is when a consumer sells their goods or services to a company. A prevalent example of this today would be an influencer offering sponsored content in exchange for a price. 

Companies will pay for exposure to their business, and the rate is dictated by the engagement and number of followers the influencer has.

If the consumer grows a large enough following, they can turn this into their full-time income and an actual marketing business.

The theme here is that the possibilities are endless with eCommerce, provided the company can bring in an audience.

Consumer To Consumer (C2C)

The most prominent example of a consumer-to-consumer business is eBay. Consumers use eBay to sell their goods to other consumers.

Another example would be consumers looking to sell their musical instruments on a used eCommerce marketplace. The consumers decide on a price, and the transaction is made.

Amazon is a unique company as they are considered B2C and C2C. Amazon works as a marketplace as they all consumers to sell products to other consumers. In recent years, companies such as Thread-Up and Poshmark have taken off immensely. 

Both of these companies are C2C and solve the problem of each consumer. For example, if someone has a significant amount of clothes they don’t wear, they can take pictures of them, upload them, and then sell them to other consumers, giving a percentage to Thread-Up.

If you operate an online company with a similar business model, Corepay can take care of your eCommerce payment processing needs and help keep your business compliant. 

The following are examples of eCommerce C2C companies:

  • eBay
  • Amazon
  • Reverb
  • Letgo
  • Thread-Up

eCommerce Businesses Similar To Amazon

One of the largest companies similar to Amazon is an online wholesale retailer, Alibaba. Alibaba has an interesting business model as they sell everything in bulk.

For example, an entrepreneur can go on Alibaba, look up a product, rebrand (white label) it, then place it on a marketplace such as Amazon. This is known as Amazon FBA.

An excellent example of this would be a cocktail smoker. You can go on Alibaba, purchase 200-300 units, brand it, and place it on Amazon at a higher price.

Flipkart is another company that is very similar to Amazon, and they are also a major competitor of Amazon. 

Flipkart quickly became the largest retailer in India, and in 2017, Walmart purchased 77% of Flipkart’s shares, valuing the company at over $22 billion.

There are currently over 100 million users on Flipkart, and with Walmart having control over Flipkart, there’s no telling how far this company will go.

Below are examples of eCommerce businesses similar to Amazon:

  • Flipkart
  • Alibaba
  • Rakuten
  • Otto
  • Newegg

Ecommerce can take on many different forms when it comes to transactional relationships, including businesses, consumers, and marketplaces.

The following are specific examples of eCommerce businesses that Corepay can provide payment processing solutions for:

  • Retail: Transactions between a company and a consumer without intermediaries.
  • Dropshipping: Dropshipping is similar to affiliate marketing, and it is a form of eCommerce. This is the process in which the vendor never owns the product. Once they make the sale, they buy the product from a third party and ship it to the customer. Dropshipping is relatively new to the world of eCommerce, and eCommerce SEO is the primary way drop shippers make sales. If you own the dropping shipping business, this is entirely B2B. If you are the owner of a business that sells goods to consumers, you could be the owner of the goods, and then outsource them to a dropshipping company such as Importify or Spocket.
  • Wholesale: Selling products in bulk; an example of this is Alibaba. Alibaba is used primarily in business models like Amazon FBA, in which the individual will purchase products in bulk and then list them on Amazon as their own.
  • Subscription eCommerce: Subscription services are rising rapidly. From meal subscriptions to online course subscriptions and even Netflix: subscription services are highly profitable. Many subscription-based eCommerce merchant accounts will be labeled high-risk due to high numbers of chargebacks.
  • Digital products/services: Downloadable digital goods or one-payment courses. With eCommerce on the rise, online courses, content creators, and SEO professionals create businesses to sell their services to companies, making for B2B transactions.

eCommerce Merchant Account Fees

eCommerce merchant accounts fees can vary significantly between payment processing providers and the type of business you have.

For example, a company that is considered high-risk, such as a CBD online store, will pay higher fees than an online store selling books with minimal chargebacks.

High-Risk Vs. Low-Risk eCommerce Merchants

high and low risk ecommerce

eCommerce merchant accounts can come with different risk factors. If you are deemed high-risk or low-risk by your acquiring banks and payment processing provider, you will be given differing fee schedules.

Low-risk eCommerce accounts are less expensive than high-risk accounts. Corepay offers extremely affordable eCommerce rates with no additional hidden fees, set up fees, or annual fees.

There are a few different factors that will determine whether your business is considered high-risk. The main reasons eCommerce accounts can be deemed high-risk are as follows:

  • Chargebacks
  • Credit history
  • Industry reputation

While these are three primary reasons, there are also other deciding factors. If your online business sells high-ticket items frequently, you do more than 50k/month in processing volume without prior history, or your business unknowingly processes fraudulent transactions, you can be deemed high-risk.

An eCommerce merchant can do many things to keep their accounts in good standing to avoid being deemed high-risk. 

You should frequently be reviewing your transaction history for abnormalities and also fighting against chargebacks that result from friendly fraud. 

Remaining financially stable is essential to keeping your merchant account in good standing. 

Your payment service provider should be offering you solutions to avoid fraud and fight chargebacks.

If you are deemed high-risk, you will also need to have a reserve account. The reserve is meant to protect you and the acquirer as a last line of defense against chargebacks/fraud.

Reserves are sub-accounts attached to your eCommerce merchant account in which a portion of your sales are kept to cover chargebacks and disputes.

Customers have up to 180 days from the transaction date to make a dispute against you. Corepay’s antifraud product, CB-ALERT offers solutions to help mitigate chargebacks and squash chargebacks.

eCommerce Chargebacks

In simple terms, a chargeback is a charge returned to a customer after they successfully dispute a transaction on their credit statement.

eCommerce chargebacks can prove highly detrimental to a merchant’s business as chargebacks are not taken lightly by banks.

Your payment service provider should be able to provide you with solutions to eliminate and fight eCommerce chargebacks/fraud.

Specific industries are going to be riddled with chargebacks. Subscription services, adult services, CBD, online dating, and the health and beauty industry are examples of industries with a higher number of chargebacks.

Chargebacks are seen frequently in CBD because of the nature of the industry. As research on CBD is still lacking, customers can claim that their product didn’t perform as promised and file a chargeback.

eCommerce Credit History

Should your business possess poor credit history, this could push your account to being labeled as high-risk. At Corepay, we will do everything in our power to still get your eCommerce account approved and processing transactions.

Reputational Risks

While eCommerce accounts may not always have reputational risk, it always comes down to the industry type of your business.

For example, the adult industry is typically viewed as taboo, and, for this reason, many banks refuse to work with adult content businesses.

If your marketplace frequently sells items such as adult toys or novelties, you will likely be deemed high-risk.

Low-Risk eCommerce

Low-risk in online businesses is typically seen with the following:

  • Average sales are under $50
  • You have less than $50k/month in revenue
  • Low chargeback ratios (below 0.50%)
  • Your company has shown consistent financial stability
  • You experience little to no fraud

How To Reduce eCommerce Chargebacks

Merchants can reduce chargebacks by working with payment providers who are knowledgeable about their industry.

There are also chargeback tools such as Order Insight by Verifi and our partner product CB-ALERT will help your company identify and fight chargebacks by utilizing these offerings.

Speaking with your payment processing provider is also critical to understanding what your business is doing right and what it might be doing incorrectly.

There are often simple solutions that websites can take advantage of when it comes to eliminating chargebacks.

Why Was My eCommerce Merchant Account Closed?

There are several reasons why your eCommerce merchant account could’ve been closed. The main reason for this is probably that your company was working with a payment processing provider specializing in low-risk merchant accounts.

A great example of this is Paypal. While Paypal is not by any means a bad company, they don’t work with high-risk merchants. Should an underwriter deem your company to be “high-risk,” they can terminate your account and hold your funds for up to 180 days.

It is common that an eCommerce merchant gets set up with Paypal and begins to process credit card transactions only to have their account terminated a few months down the line.

The reason for this is that Paypal and other low-risk services do not perform their underwriting at the time of the application.

If this happens to you, you will want to find out why. It could be due to a high number of chargebacks, the industry that your eCommerce business is in, or reputational risks.

Paypal currently accounts for nearly 55% of the eCommerce market as of 2021, with over 445,000 active websites using Paypal’s services.

eCommerce Credit Card Processing Solutions

Corepay processes all major credit card brands and alternative payment methods like WeChat and Alipay. Having the ability to process all major credit card brands is vital in an eCommerce market.

As countries continue to adopt cryptocurrencies and move away from cash, eCommerce merchants should be in the know at all times and be ready to adapt to current payment trends.

How Do I Set Up An eCommerce Merchant Account?

This process will vary depending on which payment processing provider you choose. At Corepay, we streamline this process and do all of the work for you, such as integrating with acquiring banks, choosing credit/debit card brands to work with, and providing you with state-of-the-art security and chargeback technology, such as our partner product CB-ALERT.

What Is An eCommerce Merchant Account?

The word merchant is thrown around frequently in the eCommerce industry. This simply refers to an online retailer. When you break it down further, a merchant typically sells services or goods for profit.

An eCommerce merchant account is an account in which eCommerce businesses can accept and process online payments. Your payment processing provider will also help substantially with anti-fraud solutions, ensuring that your business is as profitable as it can be.

At Corepay, we understand the importance of every transaction made on our partner’s websites. We do our part to ensure that our partners are always updated with the latest security and payment solutions.

What To Consider/How To Choose The Best eCommerce Merchant Account

Conducting thorough research and understanding how your business is doing is crucial. It would be best if you were knowledgeable about eCommerce chargebacks, monthly sales, and processing rates.

Should you be comparing rates and service terms of payment processing providers, understanding, the above will help you negotiate and understand what your business is doing well and where it can improve.

eCommerce Customer Support

You will want to have a reliable payment processing provider with 24/7 customer support. Just like your business should have outstanding customer service, so should your processing provider. At Corepay, we have knowledgeable round-the-clock customer support for every industry.


Prices will vary from provider to provider; ensure that you have full transparency between you and your partner to get hit with hidden or extra fees.

You will want to partner with a company that processes all major credit cards and can process international payments.


Your payment processing partner should be able to tell you how long they have been in business, as well as provide you with expertise and next-level solutions.


Having a payment partner who can ensure strict security rules is essential. Corepay specializes in providing our client’s maximum security.

How Can eCommerce Companies Increase Their Sales?

eCommerce SEO

Working with a payment processing provider who understands the eCommerce business model is essential. This will increase sales and help fight against chargebacks, ultimately saving your company money.

On top of this, eCommerce SEO is vital. If your business is operating entirely online, you need to take advantage of every opportunity there is.

So, what is SEO for eCommerce? SEO stands for “search engine optimization.” This means you are working to increase your brand awareness and show up on search engines such as Google, Bing, Yahoo, or Yandex.

Your main goal is to have your company show up in the search results for topics related to your company with eCommerce SEO.

For example, if you run an eCommerce sneaker store, you could rank one of your pages for “Nike shoe alternatives.” If you’re able to do this, your conversion rates will increase as you will be targeting consumers who are already in the buying funnel. This is an example of keyword research, as the main goal is to rank for keywords related to your business.

If your business is B2B, eCommerce SEO should be the primary focus outside securing a reliable eCommerce merchant account.

If you need proof, 93% of all eCommerce transactions begin with a search engine. Furthermore, over 50% of all website traffic for businesses is from search engines.

This stat is more than paid ads and social traffic such as Facebook combined.

Organic search traffic accounts for over 40% of business revenue. 

Why Choose Corepay For Your eCommerce Business?

Corepay can offer solutions for all eCommerce businesses, including high-risk merchants. Below are some of the high-risk industries that Corepay frequently works with.

eCommerce businesses are dependent on online sales and reliable processing solutions. At Corepay, we understand the importance of credit card processing for eCommerce merchants, and it is our goal to help your online business reach its full potential.

We provide solutions to reduce chargebacks and help keep your account low-risk, all while offering extremely competitive pricing.

If your online business was terminated or you’re not happy with your payment processing provider, fill out an application today and learn how Corepay can improve your eCommerce business solutions.