A Free Guide To
Merchant Account
A Free Guide To
Merchant Account
This defines an account provided by a financial institution allowing your web site owners to accept payment transactions for products/services in real time, via credit cards, e-checks, and debit cards.
direct merchant account central article
Obtain a Merchant Account and Start To Accept Credit Cards
By Bill Ramier
Obtain a merchant account and start to accept credit card payments
Merchant account services enable businesses and individuals to process
credit card payments from their customers. Its a special account tied
to a credit card processor that works with their customers bank to help
route payments into the bank account. All small businesses require some
form of payment processing. Understanding and knowing how to select
merchant account services can impact your sales revenue and profit. One
method is to outsource merchant account services to a third party
vendor. The third party vendor collects your customers information and
does all the work to process the payments for your small business.
Another way to be able collect credit card payments on the web is
called deferred payment processing. The customer or client inputs all
the information and you receive the information manually. With deferred
processing, the information does not go through the gateway. One
advantage of deferred processing is the ability to review all orders
and correct them. Deferred payment processing can be very
time-consuming especially if you have hundreds of orders per day.
Finding the best merchant account service options can be overwhelming.
Review your options and make the decision based on what your customers
would prefer and your Small business can afford.
An internet merchant account will have three types of costs:
1. Up Front Application Fees
2. On Going Fixed Fee
3. Discount Rate
4. Fixed Transaction Fee
5. Termination Fees
6. Miscellaneous Fees
Up Front Application Fees: Many internet merchant accounts
will require
an up front application fee. This fee, supposedly, is to cover their
costs for processing your application. In case you choose not to open
an internet merchant account, they still cover their initial costs.
On Going Fixed Fee: Most all internet merchant services provider
require a monthly fixed fee or "statement fee" as it is commonly named,
which is simply another way to cover their costs and make money. You
will be hard pressed to find a provider that does not require this type
of fee on a monthly basis.
Discount Rate: Usually, the discount rate will be between 2 and 4
percent. The discount rate is the sales commission the provider earns
on each sale. For example, if the discount rate offered is 3%, and you
receive a sale over your web site for $20, you will owe 60 cents to
your internet merchant provider.
Fixed Transaction Fee: Usually between $0.20 and $0.30, the fixed
transaction fee is the fixed fee portion of each sale. Unlike the
discount rate, the fixed transaction fee is the same for every
transaction.
If you would like more information on merchant accounts and credit card
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