What Does a Merchant Account Provider Do?

All fees payable must be included in the agreed period

A merchant account or more accurately a payment gateway is a sort of bank account that enables companies to take payments from a number of different methods, usually debit or credit cards processed by machines or the internet. This service is crucial for e-businesses, as it enables them to accept credit cards online without having to keep a set of dedicated account files for each card type. A merchant account can also be set up under an agreement with a merchant bank for the processing of all payment card transactions made by customers. The terms and conditions of the agreement between a merchant account provider and its clients are designed to govern the way in which the accounts are to be paid and the manner in which funds are disbursed. The merchant account providers also want their clients to pay the fees for processing amounts greater than a particular amount.

There are different types of merchant account providers available in the market. Small entrepreneurs normally open their accounts with banks and opt to process credit cards via electronic payment systems such as Click2Pay or Neteller. More established merchant account providers provide services through a payment gateway service, allowing electronic transfers from the customer’s bank account to their merchant account. The gateway provider is also responsible for managing the company’s merchant accounts, providing a system that handles all transactions including the generation of statements and reports. Some merchants go with a provider that offers both options, taking payments from both parties’ merchant accounts and handling the payment gateway transactions.

online merchant accept payments via web

The Internet has been the main source for marketing merchant accounts over the years, since almost everyone has access to it. Almost every financial institution, bank, and online merchant accept payments via the web these days. Many merchant account providers have set up their own websites on the internet to compete against each other. They often have the same rates, services, and terms and conditions, making it easy for customers to compare and choose. Customers can get price comparisons from merchant account providers, and they can even apply for a merchant account online, saving them the hassle of visiting a physical bank or company location.

Businesses that operate warehouses, retail stores, and restaurants can take advantage of electronic payments from their customers. Through a merchant account, these businesses can accept credit and debit cards and e-checks through their point-of-sale terminals, allowing them to increase their customer base and profits. Merchant accounts for these kinds of businesses should be set up by professional consultants who can provide the necessary certifications and licenses. The merchant account should include security measures such as fail-safe hardware and software, an advanced and updated server, and an assigned company contact.

provide check systems and other essential applications

For some companies, the role of a merchant acquiring bank is very useful. These companies offer merchant account services for a fee, and many of them do not even charge for e-commerce merchant services. They may provide check systems and other essential applications through merchant acquiring banks. These companies need to have merchant processing equipment, such as application software, an internet connection, merchant processing equipment, and more. This kind of merchant acquiring bank may also provide advice on setting up a business website.

Businesses that are members of the Small Business Administration or SBA should look for independent sales representatives, called accountants, when looking for a merchant account service provider. These representatives are licensed and trained in the operations of a merchant account, and they can give companies advice on how to set up an account, where to buy merchant processing equipment, and more. Business members should consider working with these independent sales representatives, as their experience and knowledge will help businesses obtain the best services possible. They can also help companies set up their merchant account.

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