Types Of Credit Card Merchant Account

Types Of Credit Card Merchant Account

Types Of Credit Card Merchant Account

In this fast developing financial environment hard cash is no longer preferred. People are looking for quick and easy payment and credit card is the in thing. Without accepting the credit card payments it becomes impossible to survive in the industry. Your business will become handicapped if the taste and preferences of your customers are not satisfied. In order to accept credit card payments your will need to open a credit card merchant account. Only through a credit card merchant account you can accept credit payments both online and offline. This enables you to indulge in business deals with people in other countries also. Whatever might be the size of your business accepting the credit card payments has become inevitable. People prefer this plastic money to hot cash. Its no longer safe to carry heavy cash. The ease and convenience of the credit card has made this plastic money irresistible.

Credit card merchant account can be broadly classified into 4 types.1) Retail Merchant account 2)Mail or Telephone order(MOTO) 3)Internet Merchant account 4)Mobile merchant account. Brief descriptions of these types are given below.

The retail credit card merchant account is the traditional account and is suitable for those in the retail business like grocery or departmental store, hotels, restaurants etc. There are very few rules that restrict your freedom and has the lowest transaction fees. This enables in the swiping of cards by the buyers as large volume of business will be expected for retails shops. Their monthly fees are slightly higher and are apt for the retails segment. Least risk is involved as you can physically verify the credit card and thus frauds can be prevented to a greater extent.

MOTO which is nothing but Mail or telephone order credit card merchant account is suitable for business which will get the customers orders through telephone. At the comfort of the home buyers will make orders and pay over phone. No terminal is required for this account. They charge higher transaction fees. This type has greater risk and that's the reason for higher transaction fees.

The third type of credit card merchant account is the Internet Merchant account. This is mainly to cater to those businesses that are carrying out orders online from their customers. This is almost similar to the MOTO account. Some bank use the other account itself for e-business while some others keep a separate account for this. You require a virtual terminal to process the credit card payments. You can also make use of the service gateway for credit card processing. The fees and charges are medium and affordable. This type of account has the maximum risks as the credit card details are transferred via internet and there is a greater chance of this information getting into the hands of hackers.

The last type is the mobile credit card merchant account. Its suitable for small business men like advocates, consultants, contractors etc who will require on the spot payment. Their transaction charges are quite high while the monthly rate is fairly low.

Based on the type of business you run these account can be selected to suit your needs. The major difference in these account are the transaction charges and the monthly fees.

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