subject: Merchant Account And Its Benefits [print this page] A merchant account is a type of account that offers businesses the convenience to accept payments by debit or credit cards. It can also be interpreted as an agreement between the retailer, the merchant bank and the payment processor for settlement of transactions carried out by debit cards or credit cards.
Merchant accounts offer clients many options in choosing payment methods. Online businesses, as well as traditional business, can use merchant banking services to facilitate smooth and speedy transactions. Merchant accounts uses advanced processing software to process credit cards, debit cards, e-checks and e-coupons.
The biggest advantage of using a merchant account to receive payments is that the transactions are carried out in real time. In addition, the payments are encrypted and pass through numerous layers of security to ensure confidentiality of the process. They allow businesses to create reports about sales and inventories and also provide a convenient avenue to make repayments when the issue arises.
Another major advantage is that the merchant account can be used to issue invoices and keep a track on pending transactions. Businesses can create a virtual terminal through which customers can enter their personal details safely without the fear of their information becoming public. Merchant accounts employ stringent security measures to keep the financial details of customers completely confidential.
Businesses can use different types of payments terminals available for online transactions. Contact less payment readers and wireless mobile terminals are the most popular terminals used to transact business online. The customer has to use a PIN number to make payments. Another option is swiping their debit or credit card to make their payments.
Wireless terminals do not use a phone line or other such wired sources to transact payments. They are usually used to make payments at unconventional places such as a restaurant or a trade show. Payments are fast, reliable and convenient to make.
Businesses can also use other payments devices such as Check Readers to accept electronic checks as payment for business transacted. The check reader comes with verification software that enables the businesses to substantiate the payment made by the customer. Before you decide on the type of merchant most compatible with your type of business, do some serious research. Finding the perfect merchant account might not be possible because every type of merchant account has their advantages and disadvantages.
Your choice must narrow down to a reliable merchant account service provider who is able to meet most of your online transaction requirements and other business objectives. It is equally necessary to compare the rates of various service providers.
You must be ready with all your documents and information to establish the authenticity of your online business. You may be asked to submit letters from your bankers to prove that you really need a merchant banker to handle online transactions. While narrowing down your choice of the perfect merchant account for your business, it is preferable to ask for guidance from experts in the field or seniors who have had the experience of setting up a merchant account.
