Merchant Account Basics
A
Merchant Account is a commercial bank
account established by a
merchant to receive payment via credit cards. Three parts are required to accept credit cards. Besides a
merchant account, you need a local bank checking
account to deposit funds and a processing solution, such a terminal or web-based store front to take credit card payments. Online
merchant account, or ecommerce
merchant account, is a
merchant account that can take credit orders on the Web.
Cost of
Merchant Account
An online
merchant account will boost your online sales, but
merchant account incurs various types of cost. A
merchant account usually requires a one-time setup fee between $50 - $100. Some
merchant account providers waive the setup fee in promotion period or in conjunction with other
services. Other costs include gateway fee, statement fee, annual fee, transaction fees and discount rate fees.
Accept Credit Card without
Merchant Account
When you first start an online business and have limited resources, the alternative would be to use the
services of a credit card processor. You can enjoy the benefits of processing credit card transactions online without the requirements of a
merchant account and high costs involved. Paypal, WorldPay, PaySystems and Clickbank are some of popular credit processing
services. Popular shopping carts or online storefronts, such as
eBay Store, Yahoo! Store and Microsoft bCentral, offer built-in credit card processing capability.
International
Merchant Account
International
merchant accounts, or Offshore
Merchant Accounts, are
merchant accounts that allow the merchants to accept payments from around the world-- regardless of where your business or customers are located. Comparing to an online
merchant account, two major
services that come with an International
merchant account are Multiple-Currency Support and International Fraud Protection.
Wireless/Mobile
Merchant Account
Mobile merchants used to face unique issues when accepting credit card payments. With the advancement of high-speed wireless networks and mobile technology, mobile businesses are no longer limited in their payment options to just cash or checks.
Many mobile
merchant account (http://www.4th-media.net/online_payment/mobile_merchant_account.php) service providers waive application fee and setup fees to attract more businesses. However, the use of wireless service provider does incur the expense of the terminal hardware, activation fee, monthly service fee, and transaction cost.
Copyright @2005, Bruce Zhang
Bruce Zhang has over 10 years experience in developing ecommerce and e-business application such as literature fulfillment (http://www.4th-media.net/order_fulfillment/literature_fulfillment.php) and supply chain management applications.
