Merchant Account
General Introduction
Credit card
processing can be a confusing subject. Before you jump in with
both feet lets give you an introduction; What merchant accounts
are, what information is needed to obtain your merchant account
and rates/fees involved.
What is a Merchant
Account?
A merchant account is a special account that is
setup for a business to accept and process credit card orders.
After processing a customers credit card the transaction goes
through a series of complex stages. The money transferred
through the merchant account is then deposited into the
business's checking account within 2 to 3 business days.
Requirements for
a Merchant Account
Getting important
information together ahead of time will ensure that you breeze
right through your merchant account application process.
Here's what you may or may not (depending on the provider) need
in order to obtain your merchant account:
Checking account (some providers set you up with
one but most require that you have one already. If you're
a Sole Proprietor you may usually use your personal checking
account, however if you're an LLC or Corporation you may need a
business checking account)
A copy of a
voided check (if you use your own checking account
for funds to be deposited in)
Articles of
incorporation, business license or reseller license. - only
if applicable. (A
'Certificate of Assumed Name' from your county Register of
Deeds office may be all that is required. These only cost
around $8.) The purpose of this is to prove you are a
legitimate business.
Pictures of business
office and location - usually only if you're high risk -
(this extra step can save you money in
credit card processing costs). If you are not considered
high risk when you apply this is typically not needed
Have a web
site (if you want real-time online processing). If
you are not an online business you will not need a website
Return policy
information (even if it's "no refunds" a provider
will need to know this).
Higher
risk accounts may need to Provide trade references
Photocopy of recent tax returns
may also be needed for higher risk accounts (may
or may not be needed depending on monthly sales volume you
expect through your merchant account)
A photocopy of your drivers license
may only be required if you're a Sole Proprietor that
doesn't have a business license.
Explanation of Credit Card Processing Solutions
In order to process credit and debit cards through your
merchant account, you need to decide which processing solution
is right for you.
Retail Swipe Terminal - This particular solution is
for retail and storefront merchants who see their customers
face-to-face. This type of solution incurs the lowest
merchant account processing fees since you actually are able to
swipe the customers credit card through the terminal. It
is believed that orders that are swiped have a lower fraud risk,
hence the reason for the lower processing fees. Check out
our
Complete Guide to Retail Merchant Accounts & POS Swipe Terminals.
Real-Time Processing - This is the solution for
businesses on the Internet. Real-Time allows you to
automatically process credit card orders through your merchant
account with no assistance needed on your end. Everything
is automated, and the funds transferred into the merchant
account, from the cardholder, is deposited into your business
checking account, within a few days. All Real-Time
solutions are secure and the purchase of a secure certificate is
not usually required. Get more information on a real-time internet
merchant account.
Virtual Terminal - If you are a merchant on the
Internet and expect to receive orders via phone, fax or mail
then getting a Virtual Terminal solution (along with a Real-Time
processing solution) is the best route to go. The Virtual
Terminal is a secure website where you login and manually type
in a customers credit card information. Once the
information is submitted, it is securely processed and funds are
then deposited into your merchant account within a few days.
A Virtual Terminal can be accessed securely from any computer
connected to the Internet. Most all Real-Time processing
solutions also come with a Virtual Terminal at little or no
additional cost. Virtual Terminals can also double as good
mobile processing solutions, click here for more
information.
Wireless Merchant
Solutions - There are two types of mobile solutions,
solutions that allow you to swipe a credit card in a mobile
environment and Touch-Tone solutions that allow you to
manually enter card information into a touch-tone phone.
The Touch-Tone solutions are usually good for smaller
mobile merchants that want to process credit cards in a mobile
environment without high startup costs. The wireless
swipe terminal solutions are great for merchants that don't
mind purchasing the terminal up front (purchasing is usually
better than free terminal options as often times free
terminals come with hefty termination fees). Both the
touch-tone and wireless swipe solutions have benefits, it
really depends on your business needs in the area of credit
card acceptance. Find out more about available wireless
merchant account options.
Continue to next page:
Merchant Account Rates &
Fees
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Accept Credit Cards On-line...
Real
Merchant Account - No Leases - and more!
2.19% plus $0.28 cents per transaction
Flat $9.99 monthly fee option with no gateway fee
Click here to process credit cards
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