Questions About Payments You Must Know the Answers To

Are You Aware of the Right Merchant Account for You?

A merchant account is a platform that facilitates the processing of payments to business people via debit cards, credit cards, gift cards, and checks. It is a line of credit that you will routinely settle with your bank along with a payment processor like VISA or MasterCard. The type of merchant account perfect for a business depends on its industry and model.

There are two basic types of merchant accounts; card present, and card not present. A card present account requires a card to be swiped during a transaction with a customer. It is a low-risk type because the customer is always present during a transaction and signs to approve the transaction. These types of accounts yield low fees and rates and are convenient for physical retail outlets.

Card present types have many other subgroups. For example, a wireless merchant processing account which utilizes a portable credit card machine. Its other characteristics are similar to those of the regular account type and they are very convenient for companies that make transaction remotely, like home repairs.

A store and forward account usually stores credit card details in a handheld machine, but does not allow the information to be processed there. It is suitable for enterprises that are mobile and do not need credit card acknowledgement, and have low ticket value and minimal credit card rejections.

There are other types of card present accounts designed for particular businesses. For example, grocery merchant service accounts for enterprises that sell consumer goods that perish quick and do not deal with gasoline. A lodging account for businesses within units where customers sleep over. Restaurant merchant accounts which are capable of making changes to customer transactions to exclude certain percentages after a credit card has been authorized.

A card not present account does not require a card for a transaction to happen. They are suitable for Internet-based businesses, telephone sales, and mail order enterprises. It is very difficult to guarantee that a person was present during a transaction with these type of accounts making them very risky and highly charged. They are categorized differently as well.

Internet accounts are convenient for e-commerce websites to trade in real time over the Internet. The transactions are processed through electronic gateways which accept or reject credit cards promptly.

Mail order accounts require customers to fill out their credit card information and their dispatch to merchants for a transaction. The merchants enter the credit card details and when the credit card details are accepted, they dispatch an order.

A touch-tone telephone account requires a customer or merchant to enter credit card details over a touch-tone phone for processing. There is no need for credit card devices in this type of transaction. The authorization numbers are issued verbally, hence they should be written down on a customer’s receipt. The process is uncertain and charges high rates.

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