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Types Of Merchant Accounts

With the constant growth in Internet and booming pattern of e-commerce, reliable and flexible merchant account has become imperative for online business owners.

A merchant account is a special account in a bank or a merchant account provider, where money from sales through credit card is routed and held before transfer to the particular business account. Any merchant who wants to take credit card orders must establish a merchant account since they are required for accepting customer credit card and electronic payments.

Before any business starts planning for a merchant account provider, it should consider the essential features provided such as:

• Fees for merchant services (is it monthly or per transaction fees).
• Gateway (the interface that connects the website to merchant account).
• The length of payment processing (the time taken to transfer money from the buyers account to the parent account).
  

Whatever be the size of business, it needs the services of a good merchant accounts provider, as having a merchant account is a crucial part of e-commerce.

Based on the business size and type, it can be chosen from a variety of merchant accounts. These merchant accounts enables to accept credit cards or electronic checks through various channels such as storefront, credit card terminal, on the Internet, via online credit card processing or MOTO (Mail Order Telephone Order). The common types of merchant accounts are:

• Internet Merchant Accounts
  This Internet Merchant Accounts - This account is used for transactions over the Internet
  e.g. for business owners who have services or products advertised, marketed and sold online.
  This account enables our clients to accept credit cards over the Internet. Basic requirements in this include a payment gateway and an account processor to process your credit card transactions.
  
  
• Retail Merchant Accounts
  A retail merchant account enables our clients to use a credit card-processing machine. Credit cards of customers can be swiped and signatures can be matched before you accept payments.
  In this account fraudulent act is minimized as the details can be inspected visually.
  
  
• Mail or Telephone Order
  Many businesses offer the choice of placing orders by phone or mail. Commonly, this often means higher risk of fraudulent activities, this kind of arrangement works best with Fast Food and other service providers.

Apart from the aforesaid basic types, ActiveMerchant.com also provide additional offshore merchant account and high-risk merchant account (for businesses dealing in high value products).

The kinds of account we offer also largely depend on whether you sell products or services, have a international business or a small business.

ActiveMerchant.com ensures that our services cater well your business needs and contributes to your growth.