Ask This When Setting Up a Merchant Account to Accept Payments

Most physical stores and online businesses accept credit cards through a merchant account. Merchant accounts are a contractual agreement between a business and merchant service provider which allows the business to accept credit cards through a special bank account. Businesses accept credit cards in order to increase their sales and decrease the checkout time. Customers will appreciate the convenience and typically spend more on a credit card order. Businesses that fail to accept credit cards are guaranteed to lose customers and potential sales.

5 Comments

  1. AskThisWhen on June 24, 2015 at 12:35 pm

    What are the different types of merchant accounts?

    Merchant accounts differ in how they collect and process the credit card information. There are two main categories of merchant accounts. “Swiped” accounts are for face-to-face transactions where the customer physically swipes their card. These are used by retailers, mobile apps, restaurants and lodging facilities. “Keyed” accounts are for merchants that collect credit card information through a traditional phone, smartphone or the internet. These are used for ecommerce websites, mobile apps and for companies that use mail and telephone order (MOTO) processing.

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  2. AskThisWhen on June 24, 2015 at 12:36 pm

    What approval factors do merchant service providers use?

    Merchant service providers are liable for every penny funded to the merchant. Therefore, there is a thorough screening process to set up a merchant account, which depends on a variety of factors. First, the merchant provider will look at the business owner’s credit score and business financials. They will also review the requested method of acceptance, return and refund policy and monthly volume and average ticket numbers. In addition to this, they will also consider any processing fees or payment systems. Some merchant service providers even consider the services or products that are offered by the business.

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  3. AskThisWhen on June 24, 2015 at 12:36 pm

    What are typical merchant account responsibilities?

    Merchants are responsible to contact their provider to adjust their total volume and average ticket limits. That is, when you first apply for a merchant account, you must request approval for an estimated total ticket average and monthly volume of credit card processing. If you exceed these limits, the merchant service provider may withhold your funds. Merchants must also accept all cards displayed online or in the store. Merchant accounts may not exceed a two percent chargeback ratio. Merchants are also not allowed to set a surcharge or minimum or maximum dollar limit amount.

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  4. AskThisWhen on June 24, 2015 at 12:36 pm

    What are the different types of available credit card machines?

    There are four main types of credit card machines. First, the most commonly used machine is the standard dial up terminal which uses the phone line to process credit card transactions. Second, the IP terminal can process transactions over the internet in just a few seconds. Third, the wireless terminal works just like the IP terminal, but the processing takes place over a wireless network. Fourth, there are computer software or online gateway services that can process credit card transactions with a reader and printer.

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  5. AskThisWhen on June 24, 2015 at 12:37 pm

    Who are the top rated Merchant Services?

    There are hundreds of different merchant services to choose from, including banks and online and physical financial organizations. Some of the most highly rated merchant services include Flagship Merchant, CreditCardProcessing.com, National Bankcard and Chase Paymentech.

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