Merchant Account and Credit Card Processing

Merchant Account Providers are in the business of providing that definitive edge to growing businesses where their reasonably priced dynamic payment processing options have gained popularity as being time saving and as providing an impetus to sales and subsequently profits.

Business trends and standards aver that electronic transactions have the widest consumer reach. With lots of transaction and payment methods available, it is important for startups to have an effective payment processing scheme. Merchant Account Providers provide varied options by way of payment processing methods. Companies that avail merchant account setups can choose the method that is best suited to their business needs.

In an online setting, credit card processing spurs businesses. Merchant Account Providers offer ecommerce merchant accounts supported by latest online security and privacy set ups. Having a reputable merchant account provider in tow can help one's business get recognized by more online shoppers. Restaurants and hospitality services opt for special credit card processing that can accommodate service tips. Business travelers and foreigners prefer credit but owners may be taken aback when their clients offer electronic checks. Merchant Account Providers provide retailers with electronic check processing set ups so that the business does not end up losing potential customers.

Retailers that accept credit cards may experience a sales shock that they may not recover from if they do not have the right structure in place. Thus, more store owners are encouraged to apply for merchant cash advance or business cash advance. These cash advance mechanisms allow businesses to inject needed cash to their operation before credit card sales reflect in their earnings as working cash. These safeguards make owners feel secure regarding their business operations knowing that they have the financial back up ready and in place.

It is widely accepted that with multiple payment methods made available to customers with as reliable a Provider as Credit Card Merchant Accounts, the business is well poised to take off to an enviable start!

Merchant Account Providers (Accept Credit Cards)

Many merchant account providers position themselves as payment and credit card processors but are really independent resellers. Network Solutions recommends you work directly with Ctopay,because your business benefits by direct access to 40 years of industry leadership; secure, reliable networks; technology for today’s business; 24-hour customer service ; and the latest in Point-of-Sales equipment to run your business.

How online merchant accounts work

online merchant accounts let you accept credit cards online

You can increase online sales and profits by accepting credit cards on auction sites or your own e-commerce Web site. No matter if you have your own merchant Web site or simply sell stuff on eBay, credit cards can become a vital part of your business. By accepting MasterCard, Visa and other credit cards using an online merchant accounts, you offer convenience to your customers while increasing online sales and profits.

1.Equipment needed for an online merchant accounts

The nicest part about electronic commerce is that you can make sales from just about anywhere in the world. For online transactions, you simply need access to the Internet, either through a high-speed cable or DSL connection at home or the office. A laptop equipped with a 3G Internet card adds real mobility to your online business.

2.Setting up an account

The first, and arguably most important, step of the online credit process is setting up a merchant account with a credit card processor, also known as an "acquiring bank." This financial institution acquires or accepts credit card transactions from your Web site, even if it did not issue the credit card.
Without this type of account, you will not be able to accept credit cards from customers. The bank deposits the daily proceeds from sales into this account, deducting all service charges and fees as well. Opening a merchant account requires approximately the same effort as applying for a credit card. You fill out an online application with your personal information and wait for an approval notification from the processing company. The bank will then validate your information and, if you are considered a good credit risk, open the merchant account.
With every credit card transaction, there are fees, however. You will be charged a small fee for each sale, plus a monthly maintenance charge. There also is an "interchange fee," which you, as a merchant, have to pay to your acquiring bank for processing your credit card transactions.

3.Opening the online payment gateway

After you have been approved for a merchant account, you then need to contact an online payment gateway provider. This company acts as the middleman between you and the credit card issuers. The provider encrypts the credit card information, passes the data to your credit card processor and sends the approval or decline message back to your Web site.
On a Web site, the gateway takes the form of a virtual "shopping cart" or "buy now" button, which can be added with software supplied by the gateway company. Customers browse your online inventory, adding selections to their cart before heading to the "checkout" page, which is where their credit card information is processed. online payment gateways also screen for questionable transactions, helping to reduce the number of bogus transactions and online fraud.

4.Virtual terminals

If you don't have your own Web site, most acquiring banks will allow you to set up a "virtual terminal," which is a secure Web site. Customers can call you with credit card information, which you can then enter by hand into a form on the Web site. The purchase is then approved or declined by the credit card issuer.

What you need to know about third party merchant accounts

1.What are third party merchant accounts?

Vendors that offer third party merchant accounts are sometimes referred to as "payment gateways." These vendors accept credit cards online for you and charge you a small fee for the service. These fees are usually based on a percentage of the credit card sale. For example, PayPal charges a flat fee of about 3 percent of each sale. This means that if they process a $100 sale for your company, you will incur a $3 fee.

2.Benefits of third party merchant accounts
There are many benefits to using a third party merchant account, especially if you have a small business or a new business. First, many vendors that offer third party merchant accounts have well established reputations for secure transactions. This will make new customers more comfortable doing business with you. Another benefit offered by vendors of third party merchant accounts is that the fees are inexpensive when compared with the fees associated with opening, maintaining and using a standard merchant account.

3.Selecting a vendor for payment gateways
There are several factors that you need to take into consideration when selecting a vendor to provide your company with third party merchant accounts. First, you will want to look at the reputation of the credit card processing company. You will also want to examine how they handle disputed charges and credit card fraud. Next, you will want to examine its fee schedule and weigh it against the fee schedule used by standard merchant accounts. You will want to select the third party merchant account vendor that has the reputation and fees that will make your relationship profitable.

What is a merchant account?

In simple terms, a merchant account allows a business to accept credit card payments and may offer other merchant services, too. A merchant account can be obtained through a credit card company, a bank or another payment processing provider. Your company can only accept credit cards and receive related merchant services through the use of a merchant account.
What is a merchant account?A merchant account is a contract between a business and a bank, which extends a line of credit to your business through that merchant account . A merchant account can also be created directly with a credit card company, such as Visa, MasterCard or American Express.
An intermediary service provider is another company that can create a merchant account for you, enabling your company to accept credit cards. It actually holds the merchant account and offers merchant services to your business. PayPal is one example of an online payment processing company that does this. Without a merchant account, your business cannot accept credit cards.
In addition to a merchant account, the bank or third-party service provider you deal with may offer other merchant services, such as those that allow you to accept debit cards, electronic checks and gift cards. Merchant services also may include transaction tracking in real time. Depending on the nature of your business, a merchant account can be managed over the phone, online or through a credit card terminal. Some businesses may use a combination of all three.
Which merchant account services your company should use will depend on a variety of factors. Many companies that offer merchant services will analyze your business' situation to help you determine which type of merchant account or which merchant services you will need.