Wednesday, October 19, 2011

Understanding What Merchant Accounts Are All About

By Ulesis Smitts


Any businessman today would recognize the importance of providing customers with several payment options. Aside from payments on cash basis, accepting credit cards is one aspect which you, as an owner, should start considering. It has been proven that having the ability to process credit card transactions in an establishment can boost business, widen the customer base, improve consumer satisfaction and enhance its credibility. That's why it makes good business sense to have credit card processing set up. Unlike cash payments, though, arranging for a system that would allow your store to accept plastic can be a bit challenging.

But this is possible by having the right information, starting with becoming familiar with merchant accounts. Technically speaking, this is a type of account that lets a merchant accept payment transactions through debit or credit card. This can be obtained from a payment processor, a credit card company or from a bank. Without an account, it is not possible to set up a credit card processing system.

There are three main types to choose from when you open an account. You have the option of choosing from a retail, MOTO or mail order - telephone order and internet merchant account. Of these three, the retail type offers the lowest transaction fees, but with stricter corresponding rules like the requirement for the physical swiping of the card. This is a preferred option for local establishments such as restaurants and grocery stores that do not and are not likely to deal with transactions over the phone.

MOTO account on the other hand does charge more fees since the transactions it caters to obviously does not involve the use of the physical card. The last type which is the Internet account operates the same way as the MOTO, although this is focused on online sales only. In this account, the seller uses a virtual terminal or payment service gateway to carry out the transactions. Making the right choice of account and its provider is imperative if you want to maximize the potential of the system.

The different fees linked to the use of an account are an important consideration for anybody. They can vary depending on the company offering the account. The cost is normally one of the reasons why small businesses are not able to push through with the account application, more so with credit card processing.

Luckily at present, there are better possibilities that small businesses can try for their credit card processing. Visit and discover how the options can work for you. Welcome new ideas which your business can benefit from.




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