The Whats and Whys of Implementing Credit Card Processing
What’s an internet merchant account?
In order for online merchants to accept payment via credit card, they must establish a connection with a processing bank. This can be done with a merchant account from the bank itself or through an account with an approved service provider. The merchant account serves as a link between your business, the issuing bank for the credit card, and your own bank account. Your merchant service provider integrates the three, thus enabling credit card processing.
What exactly is credit card processing?
Credit card processing is your ability to accept payment via credit card. The process begins when the card information is submitted (for internet merchants this is usually done manually with a virtual terminal). It then goes through the processor to the issuing bank, which validates the card and either approves or denies the transaction. This decision travels back through the processor to you and/or the customer, all in approximately one minute.
What is required to open an internet merchant account?
Just like any other account, merchant accounts have an application process and a set of criteria. The application is simple and standard (i.e. personal information, credit information, and business information) as are the requirements (your own bank account, a consistent cash flow, a computer with internet) and, appropriately, may be completed online.
What is the time frame for getting my account set up?
How soon you can use your merchant account depends on how quickly and accurately you can provide the necessary information and funding, and how quickly your provider can approve your application, build your account, and walk you through the set up process. This usually takes no more than a week, but depending on preparation, or lack thereof, it may take up to a month.
What are the fees associated with these types of accounts?
You can expect to pay a variety of start up fees covering everything from your application to your software and integration. With set up completed, there are monthly charges like access and statement fees that you can expect to pay as long as you have your account. Additionally, there are bank imposed fees called interchange rates that are applied to every credit card transaction. The two most common interchange rates are discount rates and transaction fees. These rates are standard and indefinite.
Why do I need an internet merchant account?
The preferred payment method of modern online shoppers is credit card or debit card. Your inability to process these transaction types is therefore your business’ inability to meet the needs of potential customers. A shopper that has their card in hand is ready to make a purchase; they expect the payment process to be quick and easy, and if it is not they will go where it is. It is impossible to run a successful online business if you cannot provide your customers with the service they expect. Credit card processing is obviously the best fit for internet businesses; the format is hardly conducive to payment by cash or check. Furthermore, most merchant service providers offer software that allows you to automate the process and tools to help you track and analyze your transactions.
Thanks to improving business solutions, it isn’t hard to find a provider that can answer all of your processing questions and meet all of your processing needs. At this point, perhaps the hardest question to answer is, why not get an internet merchant account?
Tags: merchant account approval process | merchant account approval process | internet merchant accounts | internet merchant accounts | credit card processing | credit card processing | recurring billing | recurring billing | merchant account | cards merchants | cards merchants | accept credit | accept credit