What is an Internet Merchant Account?
Searching for your an Internet internet merchant account
provider isn’t a task to be rushed. Because merchant services can vary
by account provider, you want to be sure you take your time to select
the one that’s the best choice for your business.
There are many
elements to consider when choosing a merchant account services provider.
Comparing fees and costs is one part of the selection process. But
other factors, like experience and customer service levels, are also
important. The following guidelines offer suggestions for you to
consider as you begin your search for the merchant account provider
that’s ideal for your business needs. A merchant account allows
businesses to accept credit cards for payment of products and services.
An Internet merchant account allows websites to accept credit cards from customers and process them through a secure Internet connection.
The Basics of an Internet Merchant Account
credit cards requires the merchant to have a checking account at a
bank, a third party online payment processor, and a processing bank
(which may or may not be the same bank which provides the checking
account) that approves and regulates the merchant account.
customer inputs their credit card number into a secure web based form,
or through shopping cart software. The information is encrypted by the
third party processor who sends the information to the customer's
account at their bank and to the merchant account's bank. If the payment
is approved the customer's account shows the charge and the money is
deposited to the business's bank account.
Types of Businesses That Benefit from an Internet Merchant Account
card purchases are the most common way for customers to purchase
products and services from businesses on the Internet. After cash (which
includes checks) credit cards are the most used method of payment
Offering credit cards purchases through an online merchant
account demonstrates that the business has the security and privacy of
its customers first and foremost. Most shoppers recognize the https in
the URL of a secure site and the padlock as signs of security.
Brick and Mortar Stores
businesses that generate the majority of their sales from a smaller
geographic area, such as a local pet supply shop, see their business
increase when they also have an online presence. Customers look for
hours of operation, address and phone number of businesses they know as
well as to get an idea of what the store offers. Many people use the
Internet as a substitute for the old fashioned yellow page telephone
book. An online merchant account is a convenience for the customer and
can mean extra revenues for the store.
stores are online only and do not have a physical presence. The
products are ordered through the store and shipped by the owner or drop
shipped directly from the manufacturer. Without an Internet merchant
account online store fronts would see the majority of the sales dry up.
websites offer digital products that can be downloaded immediately
after payment. Offering credit card payment as an option enables
customers to get the product quickly.
Professionals, Consultants, and Service Providers
times small businesses require the services of a professional,
consultant, expert or other service provider for special projects but do
not have the cash on hand, or prefer not to use cash, to pay for the
services. They would rather use their business or personal credit card.
most cases, the service provider will not provide the service until
they have the initial payment and a check takes too long to be
processed. An Internet merchant account allows the service provider to
get paid immediately and the business to conserve their cash.
and craft fairs, food fairs, book fairs, trade shows, garden shows,
consumer electronic shows all depend on sales for their income.
Attendees to these events typically do not bring a lot of cash because
they know that most vendors will accept credit cards. Even with the
prevalence of onsite ATMs, the preference from the customer's point of
view is to use their credit card.
decorations/trees, swimming lessons, ice skating rinks, landscaping,
snow plowing, etc., are all businesses that are seasonal. These types of
businesses can benefit greatly from accepting credit cards but may
think that they have to pay fees for the entire year when they are open
for just a few months. There are merchant accounts which allow the
business to accept credit cards for a predetermined time period during
Contractors providing services
such as house cleaning, window washing, landscaping maintenance,
plumbing, and more, usually send a bill after the work is done or
require a check immediately upon completion of the job.
merchant account allows them to accept a credit card as soon as the
work is finished. Or in the case of monthly services for a set amount
such as bug extermination, the companies can bill the credit card on a
regular basis. Most customers prefer the convenience of using their
credit card for unexpected repairs.
Accepting credit cards through
an Internet merchant account can lead to higher sales and more profits.
And, most importantly, can provide a higher level of customer service