Whats a merchant account and do I need one?
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 $89.98 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 an account with a bank that has an agreement with credit card companies and an internet gateway company to process credit cards. You can get one through your bank, or we highly recommend going to Authorize.Net (http://www.Authorize.Net) – a gateway company, that has a great list of banks that will set you up with a merchant account and who use Authorize.net as their gateway provider. We use them and have been very happy with their services. You don’t need one if you want to use PayPal or some other 3rd party solution. If you’re a serious business, you’ll probably want to get your own Merchant Account.
