What is a merchant account?
A merchant accepts credit cards and either ‘swipes’ the card or ‘keys’ the credit card into a terminal but this alone is not enough. A merchant account is a relationship with a credit card processing bank, that actually does the back-end processing. Merchant accounts can be set up in the name of an individual or by a corporation. Each location of a business with a single ownership must have its own merchant account. And, each website set up by a merchant that either has a different name or sells different products needs to have its own merchant account. There are two basic merchant categories, Retail, and MOTO (Mail Order, Telephone Order). The credit card business has a rate structure based on Risk, the more secure your transactions the better your rate. A MOTO account entails more risk since the sale is made by phone or over the internet, or possibly at a trade show with a manual imprinter. The numbers are later ‘keyed’ into the terminal.
A merchant account is a type of bank account that allows businesses to accept payments by payment cards, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions. In some cases a payment processor, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement. Whether a merchant enters into a merchant agreement directly with an acquiring bank or through an aggregator such as PayPal, the agreement contractually binds the merchant to obey the operating regulations established by the card associations.
Setting up a merchant account usually involves the bank understanding your business and working with a third-party processor to arrange a mechanism for accepting payments. Merchant accounts are usually required for accepting customer credit card and electronic payments through an electronic commerce Web site.
Features of merchant account :
1.Boost Web sales and cash flow .Earnings are deposited into your bank account typically within 24-72 hours.
Make shopping convenient – accept credit, debit (ACH payments), and gift cards from Visa®, MasterCard®, Discover®, and AMEX®.
2.Cut down on paperwork .Easily review account details with online reports you can access anywhere, anytime. You and your customer receive email alerts when orders are placed and approved.
3.Reduce your risk .Advanced fraud detection measures minimize chargebacks and inventory loss.Address Verification Service combats fraud by comparing the shopper’s billing address with the address on file with the card-issuing bank.
You can sign up for an merchant account service from providers like XnYnZ.com their plan starts at $74.99 and varies depending upon discount rate ,per-transaction fee.Merchant account service from above provider handels secure credit card processing, check for potential fraud, and get your funds deposited quickly. You enjoy more sales, less risk, and better cash flow.
A merchant account is a type of bank account that allows businesses to accept payments by payment cards, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions. In some cases a payment processor, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement. Whether a merchant enters into a merchant agreement directly with an acquiring bank or through an aggregator such as PayPal, the agreement contractually binds the merchant to obey the operating regulations established by the card associations.
Setting up a merchant account usually involves the bank understanding your business and working with a third-party processor to arrange a mechanism for accepting payments. Merchant accounts are usually required for accepting customer credit card and electronic payments through an electronic commerce Web site.
Features of merchant account :
1.Boost Web sales and cash flow .Earnings are deposited into your bank account typically within 24-72 hours.
Make shopping convenient – accept credit, debit (ACH payments), and gift cards from Visa®, MasterCard®, Discover®, and AMEX®.
2.Cut down on paperwork .Easily review account details with online reports you can access anywhere, anytime. You and your customer receive email alerts when orders are placed and approved.
3.Reduce your risk .Advanced fraud detection measures minimize chargebacks and inventory loss.Address Verification Service combats fraud by comparing the shopper’s billing address with the address on file with the card-issuing bank.
You can sign up for an merchant account service from providers like TuckTail.com their plan starts at $59.99 and varies depending upon discount rate ,per-transaction fee.Merchant account service from above provider handels secure credit card processing, check for potential fraud, and get your funds deposited quickly. You enjoy more sales, less risk, and better cash flow.
Every payment made with a credit card involves the transfer of funds to a merchant account, which a merchant holds directly with a bank. The merchant has full responsibility for the transactions that occur with their account, and each bank has its own terms of service to which account-holders must adhere. If you want to accept credit card payments through your Shopify store, you will need either a merchant account of your own or the services of a third-party payment processor like PayPal (see below).
