Online Merchant Accounts: Prerequisite for Retail Businesses
Online merchants can open a merchant bank account either with their existing bank or a third-party merchant account services provider. Having a merchant account allows merchants to accept credit cards online. Once a funds transfer gets approved by the card issuing bank, the merchant services provider transfers the money to the merchant’s bank account, after deducting a small processing fee.
Merchant Accounts: The Types
Retail Merchant Account: This type of merchant account is chosen by businesses with a physical point of sale. Such an account enables merchants to accept payments via credit and debit cards by physically swiping them through a credit card terminal.
Online merchant Account: As the name suggests, this type of merchant account is used by online merchants. It allows online sellers to accept credit or debit cards and process the information from their ecommerce website.
Mail/Telephone Order Merchant Account: There are some businesses that take payments via telephone or direct mail. A mail or telephone order merchant account is well suited for such type of businesses.
Apart from credit card processing services and merchant accounts, payment processing service providers also offer various other business tools, including equipment to accept card payments.
Precautionary Measures
When opening a merchant account with a third-party provider, it is imperative to ensure that the company you select is able to offer a suitable merchant account as per the nature of you business. Moreover, the merchant service providers should strictly follow the Payment Card Industry Data Security Standards (PCI DSS); describing the rules and regulations stipulating how credit card information should be handled, used and stored.
2 comments:
Thank you for sharing the information.
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