Category Archives: Merchant Account
Do you know what a merchant account is? Well, it is considered as a means for online business to accept either credit card or debit card as a mode of payment. These kind of accounts are usually offered by the local banks and they are not the same as a local checking or savings account.
If you open an international merchant account, it will be a contract between a company or the financial institution and the business owner. There are many rules set in this process since the transactions are mainly done on the internet.
Your business will make good money if you are able to accept credit cards. About 75% of all families carry credit cards and expect that they can pay with them at any store for goods and services.
Merchant services are very important for a business. If you want to open a merchant account, you must establish a good relationship with a company so that you are able to accept credit card payments from your clients. The merchant accounts provider will then deposit money to your business account whenever there is a transaction from the website. Later they will collect the payments from their customers who have been using the credit cards.
You as a merchant, agree to accept a credit card payment for your goods and services. In order to keep your businesses competitive and customer’s safe, you need to have a merchant account to handle your credit card transactions.
This process is considered to be very beneficial for your business because everything is done in the real time. It means that you as a business owner will get the money right away which is convenient in more than one way.
Nowadays, everyone uses a credit card to buy items over the internet. This is why it is essential for your business to accept them as a form of payment. You must have a bank account where all your money from such transactions will be deposited. You should also have all the supporting documents related to your business, credit balance and making repayments.
How will you figure out the right kind of merchant account for your business?
1.Review the fee that you will pay for each credit card transaction. Do not simply choose the lowest rate. Check out the services that you are receiving along with the merchant account and compare it with other providers.
2.Review the equipment for accepting the credit card payments.
3.Check out the customer support?
4.Check out if you will be able to process all types of credit card payments. If the list is limited, it’s obvious that you will have limited customers.
5.How long will you have to wait to access your funds in the merchant account? Seek a service that holds on to your money for the fewest days possible.
Consider these important tips while you shop for the merchant services account that’s right for your burgeoning business.
Today’s tough economic situation has been difficult to small business owners all over. Faced with decreasing sales, shrinking customer base, increasing administrative costs, and tighter lending, business owners are trying to find new ways to keep their businesses alive. Operations that have been traditional cash heavy operations-small eateries, bars, etc, are increasingly becoming more accepting of credit cards in an effort to maintain their competitiveness.
Businesses looking to generate more sales and customers can do so through processing credit cards. Due to the numerous benefits that they offer- with flexibility and convenience chiefly among them, many of today’s shoppers prefer to use credit cards when buying goods/services in-stores and online. The easiest and best way to put your business on the road to credit card processing is by acquiring a merchant account.
A merchant account is essentially serves as a bank account that allows a business to accept a payment made via credit or debit card. The first step in setting up a merchant account is figuring out the solution that best suits your business. This should be assessed largely based upon your business model, service/ product mix, and the industry in which you operate.
ISO’s– short for Independent Service Organizations, are third party processors that help businesses set up merchant accounts that are tailored to their business. These accounts are almost always established with a financial institution- typically a bank partnered with the ISO. In a typical transaction, a customer’s credit/debit card is swiped and the requested amount is tested against available funds or a credit limit. From their, the transaction is either accepted or declined.
If accepted, funds are then transferred to the business’s merchant account and then ultimately deposited into a checking account within three business days.
It is vitally important that a merchant account be able to do the following:
1. Process credit/debit cards in real time
2. Issue credits and voids.
3. Transactions are able to be viewed online.
You should make sure that your business’s merchant account is verified and effective secure as to protect you and your customers. For more information on merchant accounts, check out North American Bancard’s website and Wikipedia as both have very good information regarding the topic.
Nowadays, many people prefer to open small business merchant account considering the benefits and added features that comes along with it. Small business merchant account will enable your business to accept credit cards from your customers. Nowadays, internet has made so many things possible. If you want to grow the size of your business, you have to give more options and facilities to your customers when they are doing any purchase from you. You want to keep them as regular customers. With the help of small business merchant account, you will be able to give more payment options to your customers.
Credit cards have made it possible to do any kinds of purchase online. If you have a small business merchant account, your customers will get more flexibility from you and pay for the items with a credit or debit card. If you have this kind of account, you should be able to get payments from your customers in different ways like echecks or by online ACH authorization.
In order to expand your business, you must have a small business merchant account and accept the major credit cards like MasterCard, VISA, American Express, and Discover cards. This will increase your sales potential and you will have more customers to do business with. Once the customer has decided to purchase an item from you, either he can make payments by echeck or ACH or by credit card or debit card. You will get the money deposited into your small business merchant account within two to three business days if the payment is done by credit or debit card. When you swiped the credit card of your customer, money earned that day can be sent to your business checking account. The monthly statements at the end of month make tracking sales volume and deposits into your account easier. The credit card terminals or software for processing payments can be purchased outright or leased.
You also have other advantages of opening a small business merchant account. You can open up future capital opportunities for your business and you don’t have to go through the complex loan application process. You may be able to obtain advances based on the number of the credit card receipts from month to month. This way you have more access to fast cash that can be used for pressing needs. You will get a lot of buying power for your business and this will definitely help in the expansion and growth of your business.