Merchant Account Solutions
Many small businesses find that offering customers the option of paying with a credit card has several advantages. Some examples, such as convenience for customers and increased sales for their business. Business owners who choose to do so will need the services of a merchant account provider. There are a few types of merchant accounts, with various features and a range of fees
Types
Although many banks offer credit card processing services to merchants, few provide businesses the range of services and processing choices that an independent merchant account business can. These companies, known as Independent Sales Organization/Member Service Providers specialize in credit card processing. ISO/MSPs, also called merchant account providers, offer businesses of all sizes the ability to process online, wireless and mobile credit card purchases
Retail or Internet Accounts
The two basic types of credit card transactions are purchases made without the physical presence of a card, such as a telephone and Internet orders, and purchases at retail establishments where the card is swiped through a processing terminal.
Transaction fees are lower for purchases in which the card is present, but some retail merchant account providers will close your account if you process too many online sales. If more than half your sales are from the Internet or phone purchases, you should sign up with an Internet merchant account provider.
Payment Gateways
A payment gateway is used with Internet merchant accounts and enables simultaneous processing of unlimited credit card orders. Purchases will pass through two layers of authorization. Payments made will go t
Mobile And Wireless Solutions
A wireless merchant account allows you to process credit card transactions from remote locations, using a wireless terminal. This is a good option if you sell merchandise at fairs or trade shows, or provide mobile services such as towing.
With a mobile merchant account, you can use your iPhone or iPad to process credit card purchases. If you choose this type of service, you will need to sign up with Authorize.net. They are a mobile merchant account provider that is use to authorize transactions. I will carefully read the Service agreement and check with the Better Business Bureau before signing up for the merchant account services
Fees
You can expect to pay a monthly service fee in the range of $15 to $25, plus about 25 to 35 cents for every transaction processed. You may also need to buy or lease your equipment. Some companies charge up to $500 as an application fee, which might not be refundable, but many will allow you to apply for free. Be sure to check for hidden expenses, such as fees for tech support or expedited card processing.
How to Apply for a Merchant Account
To get a merchant account, you must go through an application process to assure your business is qualified to assume this responsibility. You have to manage private customer data and agree to pay charge back fees if customers disagree with charges. Merchant services providers evaluate each application to assure the company and owner do not have bad credit histories, questionable backgrounds or unresolved issues with past merchant accounts. Applying for a merchant account is similar to applying for a business bank account or loan.
