In today’s world with large scale business
and merchant transactions being carried online and offline speedy
and safe payment options are an essential requirement. Merchant
accounts are also one such solution that takes care of this
specific need of the business community.
A commercial account or a merchant account is
established by an agreement between the bank or the merchant account
provider and the businessman or the merchant is known as a merchant
account. This agreement has a well-defined set of rights, warranties
and duties. You can approach the bank or the payment processor to
get the account.
Once you decide to set up a merchant account to
accept credit cards, try to compare the offers of the various banks
or the merchant services provider. After you approach the bank,
the bank requests information about your business to access it.
According to this assessment it determines what fees you will have
to pay for the transaction the processing time is around 1 to 4
weeks. Budding businesses may take more as the bank requests additional
information from them.
Generally the bank requires information about your
business history & performance particulars, details about your
expected turnover, business accounts, average transaction values
and what goods and services you are offering or selling before setting
a merchant account and providing credit card machines.
work in a very particular way when a customer makes a purchase you
key in the customer card number or swipe the card in the credit
card machine. The next step is to key in the transaction amount
then the terminal passes on the details to the bank where the customer’s
account is checked to see whether enough funds are available or
not. If funds are present than the transaction is authorized. Once
the transaction is completed the bank carries on the transaction
process. It then credits your merchant account with the money from
the customer’s account. Within 3 to 4 days. The bank charges
card processing charge for this service.
Accepting credit cards can be risky if certain
precautions are not observed like asking the card security code,
use an online database to check the address and names you have been
provided by the customer. You can also use the address verification
service offered by the banks which checks the numeric details of
the customer’s address.
Merchant account is the number one credit card
processing service provider in US. Visit the site www.merchantaccounts.co
to get more information about merchant account services.