Merchant
Accounts, Credit Card Processing, Credit Cards, Internet Commerce, E-Commerce,
Credit, Finance, Money
|
|
|
|
|
|
| |
| MERCHANT
ACCOUNTS 101 |
A
merchant account allows a business to accept
credit cards, debit cards, gift cards and other
forms of electronic payment.
This is also widely known as payment processing
or credit card processing. A merchant, a business
owner who receives payment for their goods or
services, must apply for a merchant account. |
|
|
|
The
merchant account may be or may not be established
based on several factors of which risk is the most
important.
Merchants who own businesses with no credit and have
poor credit may find it difficult to establish a merchant
account.
Merchant accounts are not free and fees are
charged whenever a merchant processes a credit card
for payment.
These fees will be will vary from provider to provider
but all fees are based on something called Interchange.
Interchange are the base rates dictated by Visa and
MasterCard from which all merchant account providers
markup their rates.
Interchange is made up of varying tiers. These tiers
describe costs for different kinds of credit cards
when processed under different kinds of circumstances.
For example, a check card costs less then a consumer
credit card which costs less then a business card.
The method of how a credit card is processed changes
which tier of Interchange is applied.
For example, a swiped credit card costs less to process
then one keyed into a credit card terminal.
|
| |
|
|
|
|
|
|
|
Merchant
Accounts, electronic payments, credit cards, credit card processing, debit card
processing, gift cards, business transactions,
payment processing, qualified rate, transaction fee, authorization fee, batch
fee, chargebacks, credit card terminals, POS Softward,
internet payments, payment gateways, statement, qualified rate, authorization
fee, chargeback fee, batch fee, statement, fees
