Credit Card Processing for Merchant Accounts

If you want to sell your goods and services over the Internet then you need to have (or should have, if you are a smart up-and-coming entrepreneur!) a merchant account. A merchant account is not a personal account; it is an account established by a merchant for the purpose of accepting credit and debit cards as a form of payment. A merchant account also acts as a kind of agreement between a variety of parties. These parties include the retailer, the merchant bank and the payment processor for all credit card and debit transactions.

Credit card processing for merchant accounts is an integral part of being a business owner. If you want to sell anything, then having a system in place that will allow you to offer an array of payment options means that you will increase your potential for sales.

Credit Card Processing for Merchant Accounts

Here are some important tips to consider when it comes to credit card processing for merchant accounts:

Online credit card processing is still relatively new for merchant accounts. For this reason it is strongly recommended that you seek out the best advice possible in this area in terms of costs and software options. Find a specialist online who is very familiar with all of the ins and outs of credit card processing. Most brick-and-mortar banks on the other hand are not well acquainted as of yet with how this software works when you sell your products or services online.

Bear in mind that online credit card processing bears some similarities to a retail merchant accounts but it has a difference as well. For example, online processing has different kinds of fees attached to it. When it comes to credit card processing for merchant accounts it is imperative that you understand all of the fees that you will be charged and also that you understand the whole process in general. Review the application thoroughly and make sure that if you have any questions you ask them before you sign anything. Doing this will save you from any unwanted surprises when your first statement arrives.

Make sure that it is understood that you are signing up for a merchant account that features online credit card processing and not for a retail account. If the account is set up incorrectly as a retail account from the start then you will be charged higher fees. The majority of online credit card processing accounts offers a rate that is two percent or higher. If you are quoted a rate that falls well below this (or a great deal higher than this) then it is likely that you have been misquoted.

Remember credit card processors make their money from fees either through transactions or through direct fees to their customers. Make sure you are comfortable with the fee that you will be charged for your merchant account. Typically credit card processors require that merchants sign an agreement or contract that binds them for a period of time.

If you find that gathering information is overwhelming, there are a few places you can learn more about merchant services. Starting out with Wikipedia is always a good way to find out background information, then as your search becomes more defined, you can search specific companies’ information; for example: North American Bancard and PayPal have good information on their websites. Credit card processing for merchant accounts will have you on your way to bringing in more business to your website in no time!

{ 1 comment… read it below or add one }

payment processing August 9, 2010 at 6:26 pm

This was a good read. I agree, it’s real important to chose the right credit card processor. Thanks for posting this up!


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