merchant services credit: Choosing the Best Merchant Account

2007-06-20 15:49:53

( Business )



For people running an online business, merchant services credit is one of the most important considerations. A merchant account is a company that allows an online business to accept credit card payments. It establishes a link between the bank and the merchant account.

In general, credit card processing firms help online businesses set-up a merchant account. Likewise, they establish a connection between the online business and major credit card companies such as Visa and MasterCard. There are two methods by which online stores can obtain a merchant account. Merchant services credit is possible through electronic swiping machines or through electronic connections.

Kinds of Credit Card Processing

In addition, merchant account credit establishments have the option to choose from three processing methods. The first method they can use is electronic card readers. This device is solely designed for interpreting the data stored in a credit card. A telephone line and a power source is needed in this option. When the card is inserted into the swiping machine, the magnetic chip inside the card verifies a transaction to determine whether it can be accepted.

Another method of processing credit card transactions is through an Automated Response Unit (ARU). In contrast, the amount of transaction is manually processed by the machine. It then authorizes the transaction to be charged into the customer’s credit card.

People who are familiar with online shopping and e-commerce are probably aware of the next processing method which is payment gateway. This operates like the card-reader used by many retail establishments. There are firms that run their own payment channel although most of them hire a third party payment gateway.

Major Sources of Merchant Accounts

Finding establishments offering merchant services credit is easy. They can consider several avenues for getting a merchant credit company. The first one is through a web hosting company. Majority of these providers have tie-ups with credit card processing firms, and their shopping cart program is linked to these companies.

Banks provide people with another major source of discover merchant services. However, these agencies do not provide an account to home-based or on-line businesses. It is important to find out what is the procedure when applying for a merchant account using banks.

Finally, a popular merchant account for online businesses is PayPal. This payment system accepts credit card transactions of its members. The advantage of this system is that it does not collect any amount for setting-up the system.

It always pays to shop around for the best discover merchant for your online business. Learn how to read between the lines and be aware of possible hidden charges. You need to consider the policies and guidelines before affixing your signature on the dotted space of your contract.


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