Establishing a Merchant Account for Your Web Business
Merchant accounts are accounts that accept and hold credit card transaction monies. These accounts can be established through merchant service providers (MSPs) such as banks or via independent service organizations (ISOs). A merchant account for online business is similar to a merchant account for mail order business. When you apply for a merchant account, you'll need to supply the bank with the average order size and the average monthly amount that you expect to be running through the account.
What You Need
In addition to procuring a merchant account for credit-card acceptances, e-tailers also need an order form on their sites. The form can be built using HTML, and can be set to use a CGI script. Preferably the form should be encrypted using SSL (Secure Sockets Layer).
You will also need payment-processing software to handle transactions between you and your bank. The software is more of a service than a product and information sits on that company's server rather than yours.
How It WorksOnce a relationship with a merchant account provider or acquiring financial institution is set up, the institution then deposits daily credit card sales into the merchant's account after deducting certain fees. Some financial institutions also conduct merchant services, either in-house or out-sourced to third parties. Such services include customer service, billing, authorization, reporting and settlement services. Third-party companies offering these merchants services include First Data Corp. and MerchantConnect, from Nova Information Systems.
Merchant Account CostsE-tailers also need to determine which merchant account provider fees will work for their businesses. Common fees include:
Discount rates: the percentage of bank card sale amounts that the acquiring financial institution charges merchants for transaction settlements.
Intercharge fee: amount that merchant's acquiring financial institution pays consumer's issuing financial intuition for every credit card transaction settled.
Equipment and Installation: these costs include hardware/software, set-up and programming. If you're purchasing an e-commerce solution from your Web hosting company, you may be able to avoid these costs altogether, or they may be bundled into your hosting fees
Monthly Fees: also includes minimum fees, may cover total charges, statements, and excess usage.
Other Costs: some banks hold back a percentage of merchant transactions to cover contested charges. Chargeback fees can also be charged when disputes are settled in favor of credit card holder. Fraud often takes the form of disputed charges, which, in the U.S., are almost universally settled in favor of the card holder.
90% of all Internet payments are made by credit card that is by acquiring your own merchant account. You should get yourself set up with this payment option as quickly as possible. Online businesses can increase sales by as much as 400% right after they gave their buyers this convenient way to pay.
To know more, visit here
What You Need
In addition to procuring a merchant account for credit-card acceptances, e-tailers also need an order form on their sites. The form can be built using HTML, and can be set to use a CGI script. Preferably the form should be encrypted using SSL (Secure Sockets Layer).
You will also need payment-processing software to handle transactions between you and your bank. The software is more of a service than a product and information sits on that company's server rather than yours.
How It WorksOnce a relationship with a merchant account provider or acquiring financial institution is set up, the institution then deposits daily credit card sales into the merchant's account after deducting certain fees. Some financial institutions also conduct merchant services, either in-house or out-sourced to third parties. Such services include customer service, billing, authorization, reporting and settlement services. Third-party companies offering these merchants services include First Data Corp. and MerchantConnect, from Nova Information Systems.
Merchant Account CostsE-tailers also need to determine which merchant account provider fees will work for their businesses. Common fees include:
Discount rates: the percentage of bank card sale amounts that the acquiring financial institution charges merchants for transaction settlements.
Intercharge fee: amount that merchant's acquiring financial institution pays consumer's issuing financial intuition for every credit card transaction settled.
Equipment and Installation: these costs include hardware/software, set-up and programming. If you're purchasing an e-commerce solution from your Web hosting company, you may be able to avoid these costs altogether, or they may be bundled into your hosting fees
Monthly Fees: also includes minimum fees, may cover total charges, statements, and excess usage.
Other Costs: some banks hold back a percentage of merchant transactions to cover contested charges. Chargeback fees can also be charged when disputes are settled in favor of credit card holder. Fraud often takes the form of disputed charges, which, in the U.S., are almost universally settled in favor of the card holder.
90% of all Internet payments are made by credit card that is by acquiring your own merchant account. You should get yourself set up with this payment option as quickly as possible. Online businesses can increase sales by as much as 400% right after they gave their buyers this convenient way to pay.
To know more, visit here
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