Want An Online Credit Card Merchant Account?

An online credit card merchant account can help your business in ways you might not have imagined. While it may seem as though only high-ranking company executives or big-name corporations might be interested in a merchant account, there are many reasons why a small-scale entrepreneur or even a home business owner might want to learn more about this unique marketing and credit card payment tool.

One reason to consider an online credit card merchant account is because you can apply directly through your company’s bank, if you have been doing business with a local financial institution. Chances are the bank can offer a merchant account to business owners like you, but it is important to check the terms and fees, since you may be able to get a better deal elsewhere. Banks don’t always have the lowest prices on accounts like this. You can browse the Internet or ask around the business community to find out who has the lowest merchant services account fees. The costs may include any combination of the following: application fee, setup fee, gateway, maintenance and service, annual membership, and others. However, some account underwriters can waive some or all of these fees for the right customer. Find out if your company is eligible for these waivers or some type of discount before you apply.

Another reason to think about applying for an online credit card merchant account is to upgrade your professional status and enhance the way you do business. You don’t have to operate in the mom-and-pop stage of development forever. Instead, you can get the merchant account and start processing business dealings faster and more efficiently than ever. Your customers will admire and appreciate your efforts to make things work better for them, and your employees will appreciate the time saving steps that can be implemented with a merchant account.

When approved, your online credit card merchant account will help you create a Website to represent your business on the World Wide Web. Some underwriters provide free software and setup while others charge for these services. Be sure that your site offers an up-to-date image with plentiful information to catch the browser’s eye and keep customers interested long enough to make a sale. When they do decide to purchase something, your merchant account setup will let them pay right away with a credit card instead of waiting for a check to be posted. The money will be funneled by the underwriter through a gateway for deposit in your checking account.

With an online credit card merchant account, your Website can soon become fully functional, alleviating much of the sales and cashier work that your company may presently be handling. Your time will be freed to deal with other aspects of the business, perhaps the more creative venues. In the meantime the Website will be automated enough to process payments without the help of customer service, except for the occasional question or problem, so keep someone available at least part-time for this purpose.

Don’t wait for your competitors to jump at the chance to get ahead of you. Find out now how you can apply for an affordable online credit card merchant account.


Different Types of Merchant Accounts

After cash, credit cards are the most widely accepted means of payment in the world. No matter what business you are running, or what product you are selling. Chances are that you will require a credit card processing system. From American Express to Visa, the brand may vary, and since there is no such thing as an individual payment gateway for each individual company. Every company may have a payment system that is unique to them, but the payment gateway is what is the essential link. But before we go into the technicalities, lets get some of the basics out of the way. Especially some of the terms just used.

Any credit card transaction on the planet acts in a predefined manner, first the customer will offer his credit card details, the credit card details are then processed through a payment gateway, and finally the credit card payment is received in a merchant account. The way in which the credit card payment is accepted is different, you could be using the credit on a EPOS (electronic point of sale terminal), or you could have a successful online store that is accepting payments. The important thing to remember is that the mode in which you are accepting the payment is not as important as having a payment gateway and a good merchant account.

Okay so the next thing to discuss here is what is a payment gateway? well a payment gateway is usually a third party system that processes the credit card transaction it could be the server an EPOS dials out to, an e-commerce system, however the term payment gateway usually refers to the latter, and once the checks are done the funds are then transferred into a merchant account. The essential component is the merchant account, the merchant account is offered by companies and based on the volume of transaction and certain other criteria; the charges and upkeep is different. No merchant account is free as the company is offering you services. Merchant accounts in general are of various categories and depending on the type of business you are running, different monthly charges, and percentage charges are applicable.

Important merchant account types

a) Regular merchant accounts – Although in business there is no such thing as a typical business, however a majority of businesses are usually treated as regular merchant accounts, they have low maintenance fees and lower rates than other merchant accounts.

b) High risk merchant accounts – This category is usually reserved for high risk credit card processing accounts, for example accounts that handle a large volume of transaction that may or may not offer a 100% authorisation rate. An example will be an outbound call centre, that attempts hundreds of credit card transactions to verify the credibility of the credit cards. There are also additional complications like currency conversion involved. Hence the term high risk merchant account.

c) Specialized merchant accounts – There are some businesses that require specialized credit card processing, or might require a specialized merchant account that caters to requirements such as offshore processing, etc. Such merchant accounts are usually referred to as specialized merchant accounts.


When to Switch Merchant Account Providers and How

Businesses primarily cancel their merchant account because they no longer need to accept credit cards or because they're switching to a different provider that has offered them lower rates and fees. When an account is cancelled because a business no longer needs to accept credit cards, it usually means that the business is being dissolved and there's no reason to have an account at all. However, cancelling a merchant account to switch to another provider that promises lower rates may be more trouble than it's worth – literally.

Check with your existing provider before you cancel your merchant account

Competition is the driving force behind the high merchant turnover that exists in the payment card industry. Any small business owner can attest to the high frequency at which they're approached by a merchant account salesperson promising the best rates and fees. With so many offers it's tough not to investigate a few, and many business owners do just that. The problem is that they switch to the new account without consulting their existing provider.

Merchant service providers want to retain clients. It's a lot easier for them to keep an existing client than it is to acquire a new one. The same is true from a merchant's point of view. It's a lot easier to have the rates and fees lowered on your existing merchant account than it is to cancel the account and open a new one.

Don't look at the constant flow of new merchant account quotes as an annoyance, instead, view them as a helpful reminder. Each time you're offered merchant account rates that are lower than the rates on your existing account, send them to your provider and request that they match or beat the better quote. Even if you're in a contract, many merchant account providers are willing to lower rates and fees in order to retain your business.

By giving your existing provider a chance to match quotes that you receive, you're getting the benefit of the lower rates without the hassle of cancelling your exiting merchant account and opening a new one.

Avoiding cancellation fees when switching merchant accounts

So what happens if your existing provider won't match or beat the rates of a competitor? The first thing to do is determine if you're under contract, and if so, how much the cancellation fee is to close your merchant account. Even if you're looking at a large fee, there are a couple of things that you can do to avoid paying it entirely.

The first is to read the terms of your contract. Most cancellation fees are void if a merchant service provider raises rates or fees within the contract period. If your rates have increased since you originally signed the contract, or since the last time the contact auto-renewed, you may be able to cancel your merchant account without having to pay the fee.

If that fails, try to pass the cancellation fee along to the new provider that's trying to earn your business. Especially if you're processing a decent amount of credit cards each month, it may be worth it for the new provider to pay your way out of your existing account. Believe it or not, this is something that happens on a fairly regular basis. Most providers won't advertise that they'll pay cancellation fees to their competitors, but they will do what they can to get your business if the numbers work for them.

If all else fails…

If you're existing provider is unable or unwilling to meet lower rates and fees promised by a new provider and you can't avoid the cancellation fee, make sure that it's worth it to switch accounts. Crunch the numbers to figure out if the lower rates and fees will save you enough to negate the out-of-pocket expense of the cancellation fee.

Make sure the new rates are truly better

The final and perhaps most important point to cover before switching merchant accounts, is to make sure that the rates and fees promised by a new provider are really better than what you already have. Especially on a tiered pricing structure, merchant account rates aren't always what they appear to be. The article, "Merchant Account Rates: Tiered VS. Interchange-Plus Pricing" at the MerchantCouncil will help you to get a better understanding of this topic.


Why You Should Have A Merchant Account

If you have been running a web-based business successfully without the use of a merchant account, you may wonder why it is necessary to have a merchant account and all. After all, you can accept checks or money orders via snail mail; therefore, you may ask yourself, “Why should I bother with the hassles of signing up for a merchant account?” Nevertheless, you would be surprised to find that there are myriad benefits in having a merchant account; in fact, making more money through your Internet business is just one of them.

First, in not having a merchant account, you are severely limiting the amount of income that you can make from your online business. For example, with a merchant account you can accept MasterCard, Visa, Discover, and American Express once your initial application is approved. In the case of the latter, you will be required to fill out a separate application for American Express approval.

The approval process for a merchant account is usually five to seven days and the wait is well worth it; once you are approved immediately increase the type of payments you can receive and therefore increase the number of clients who were willing to buy your products online.

The most obvious place to get a merchant account is from your local bank. Simply stop and your local bank or visit the bank where you hold a checking or savings account and speak to one of the bank representatives about their merchant accounts. Conversely, your local bank will probably be more than willing to send you brochures or pamphlets that describe their merchant account programs in great detail.

When you are looking to apply for a merchant account with a local bank it is a good idea to ear in mind that if you already have an existing account with a bank, that bank will probably be more willing to provide you with a merchant account based on their experience with you as an existing customer. If you have exhibited responsible behavior with an existing checking account of loan with an institution, the bank is quite liable to take such information into consideration when determining your eligibility for a merchant account.

Having a merchant account also keeps you at an even keel with your competitors. By simply researching the competition, you will soon find that many of your competitors have merchant accounts as a payment method for customers. The reason that your competitors maintain a merchant account is to primarily provide an added convenience for customers desire to pay by credit card. Not only is the authorization process fast, but allows the customer to place their order in the fashion that they've grown accustomed to while paying for their purchases.

Another added benefit derived from having a merchant pertains to this simplification of record-keeping. Let's face it, when it comes to paying taxes no one considers it a good time. Nevertheless, paying taxes a necessary evil and it pays to be well organized when tax season comes around. With the detailed monthly statements that you receive with a merchant account, you can access your expense records quickly and easily.

Many merchant account suppliers offer software applications with their merchant account program that will allow you to improve the look of your website. For example, you can add a shopping cart to website or the ever popular “buy now “buttons. Such graphics give your website professionally designed to look and help your website appear easy to navigate and user-friendly: if customers find your website user-friendly they're more likely to return again and again.


The Importance of Getting a Merchant Account

A business, whether it is online or has been operating in a standard office or shopping mall, should have the payment option of using credit cards. Businesses that do not offer credit card payments are more likely to run out of customers. In the competitive market today, you should take advantage of all the opportunities that you can get. A merchant account is necessary especially for businesses situated in a shopping district because people usually do not bring their cash nowadays. Instead, they carry their credit cards so that they can conveniently shop without having to bring lots of cash in their wallet. You surely do not want to reject customers because you cannot accept their credit card payments.

Accepting credit card payments is necessary for business nowadays. Internet based businesses can have the ease in getting paid using the payment gateways for online transactions. This would assure you and your online customer that the transaction can be processed hassle free. This also ensures you that the customers can make the payments easily and at the same time you can get the payment as soon as possible.

In order to have this type of payment system on your business, all you need to do is set up a merchant account. The process of getting approved for a merchant account is very simple yet can bring so many advantages on your business. There are different things that you should know so that you will not have any problems in getting yourself an account. Having enough knowledge about the matter would surely help you in getting the most efficient and affordable merchant account for your business. You may want to check out the different rates that several service providers offer to their clients so that you can have the chance of selecting the best among them.

The account that you would create to handle your credit card payments is directly associated to the bank account that you use for your business. The transactions are taken to the account provider every time a credit card is used for paying the bills. The provider would then handle the transaction and other necessary calculations for the payment being made. For this, the account provider deducts a service charge and transfers the payment directly to your business checking account. The transaction fees on differ among the various merchant account providers. Make sure that you are getting reliable service providers. Credit card payments may be risky yet the ease it can provide for your business can give you significant advantages.

There are some cases in which banks tend to refuse these types of transactions. The risks involved in this type of payment are often avoided by banks yet you can have alternative choices such as merchant account service providers. These service providers can be able to handle such transactions using software that can be used to accept credit card payments over the payment counter or via the Internet. This would surely give you ease in providing a payment system for the customers online or at your local store.


Merchant Account What it is and How it Works

What it is. A merchant annual is a acquittal agenda processing annual that a merchant coffer provides to a merchant. It represents a anatomy of band of acclaim that the merchant coffer extends to the merchant and it allows the merchant to acquire the agenda brands, defined in the acquittal processing agreement.

How it Works. When a merchant accepts a customer's acquittal information, it is transmitted to the merchant bank. The merchant coffer again deposits into the merchant's coffer annual the transaction amount, bare the altering fees and the processing costs, and submits a acquittal appeal to the coffer that issued the agenda acclimated to accomplish the purchase. The arising coffer again pays the merchant coffer the transaction amount, bare the altering fees, and posts the transaction on the cardholder's annual statement. At the end of the ages the cardholder pays the arising coffer to abutting the cycle.

Types of Merchant Accounts. Based on whether or not the agenda was accessible at the time the acquittal was processed, there are several merchant annual types:

* Card-Present Merchant Accounts. This blazon of merchant annual annual includes all acquittal processing solutions that use concrete acquittal terminals to apprehend the annual advice from the alluring band of a agenda that is swiped through them. Because the merchant is in absolute control of the agenda (hence, card-present) as the acquittal is actuality made, these merchant accounts are advised beneath acceptable to accomplish counterfeit affairs and get pleasure lower processing rates.

* Card-not-Present Merchant Accounts. Included in this accumulation are all acquittal processing casework area the agenda advice is manually entered into the merchant bank's system, application a web browser or a blast keypad. The agenda itself is absent (hence, card-not-present). Because the merchant is never in control of the agenda and the advice is accustomed to him or her, card-not-present affairs are advised added acceptable to accomplish counterfeit action or processing errors and are candy at college rates. There are two audible sub-groups here:

o ECommerce Merchant Accounts. These merchant accounts are acclimated by web-based merchants and accredit consumers to access their acquittal agenda advice into a acquittal anatomy on the merchant's website. Once submitted, the acquittal capacity are automatically transmitted, via a acquittal gateway, to the merchant bank.

o Mail Order and Blast Order Merchant Accounts. Also accepted as MO/TO merchant accounts, these acquittal processing solutions accredit merchants to access the acquittal advice that is provided to them by their barter into a anatomy on the merchant bank's acquittal system's website or, application a blast keypad, to alarm it into the merchant bank's system.

Benefits of a Merchant Account for Your Business


If you own a business, again you can absolutely annual from signing up for one or added merchant accounts for your business. Merchant accounts are accustomed by millions of business all over the apple and such accounts advice business owners accompany in austere money. Plus, there are countless allowances acquired from accepting one or added merchant accounts for your business. Let's analyze the allowances below.

You will be afraid by the advantages afforded to you back you administer for merchant accounts for your business. First, with one or added merchant accounts, you can acquire a array of acclaim cards from your customers. In fact, already you administer for one or added merchant accounts, you can alpha accepting Visa, MasterCard, Discover, and American Express from your customers. Thus, with a array of means to acquire payments, you will acquisition that merchant accounts for your business advice you accretion cogent assets and will ultimately access your basal line.

Secondly, with the appearance of the Internet, abounding business owners are now administering their business online. With merchant accounts, you can badly access your sales. Barter will get pleasure the affluence in which they can accomplish purchases and they will, in turn, acclaim your web-based business to others. Finally, articulate announcement is not alone free, but it is additionally the best anatomy of announcement there is.

Thirdly, with merchant accounts, you can accomplish any and all of your barter feel absolutely defended in authoritative their purchases. Barter will be able to accomplish defended purchases from your website and such aegis goes a continued way. Back a chump feels defended while authoritative purchases, it promises their acknowledgment to your web-based business for approaching commodity and/or services.

Fourthly, with merchant accounts, you will be able to accumulate more good clue of your banking transactions. Back you assurance up for merchant accounts for your business, you will accept a annual annual of all of your affairs and the money you accept received. Such statements are invaluable appear tax time. With your statements you can calmly actuate taxes and accomplish your job or your accountant's job that abundant easier.

Applying for merchant accounts is a simple process, one that takes alone a amount of moments to complete. In fact, you can administer for merchant accounts online. Further, already you accept activated for a cardinal of merchant accounts, it can booty one to ten canicule to acquisition out if you are approved. Already you accept been accustomed you will accept notification and instructions on how to auspiciously apparatus your fresh merchant annual and how to accommodate it with your accepted business workings.

Finally, with the artlessness of applying for merchant accounts for your business and with all of the allowances acquired from accepting merchant accounts, it is no admiration that businesses await on the use of such accounts daily. Further, with the Internet more acceptable a appointment for business transactions, merchant accounts are acceptable a call for web-based businesses. So what are you cat-and-mouse for? Assurance up for your merchant annual today!


How To Apply For Merchant Account

The truth is that any respectable entrepreneur can apply for merchant account benefits. After submitting the application, you may want to contact a company can make when it allows customers to pay with a credit card payments. Find out first if there is an application fee, and if so, you may feel as though the account that is described for you may feel as though the account that is described for you may want to first look for another lender who doesn’t charge this fee before you decide whether to go with this company. Then complete the form, although you may feel as though the account that is described for you may want to work with, click on the Website link that takes you to buy things you don’t know how to answer any of the questions.

He or she may come across as pushy in trying to get you to the application screen. We all are a little bit more impressed with the customer service rep. That is because we somehow intuitively understand that the technological means of processing credit payments suggests that a higher level of professionalism and sophistication to their business. Have you ever wondered what it would take to apply for merchant account status do so because they realize it confers a higher financial authority is supporting the company that accepts credit card payments than one, perhaps, that does not.


High Volume Merchant Accounts

As your business continues to grow and customers buy more goods and services, you may want to consider joining those who are applying for high volume merchant accounts. When you are approved for a high volume account, you can get good prices on mid- and non-qualified sales, along with debit processing, monthly statement fees, and additional expenses. The greater your volume of business, the better deals you may be eligible for when working with financial institutions or companies who can provide this valuable service.

The way it works is that you apply for a merchant account at a bank that offers great pricing and low-cost fees. These can be packaged in a variety of ways. For example, you may want to pay a few cents for each transaction, but if you experience high-volume sales, this could become a costly option. The other route to go is to pay a low monthly overall percentage, often between 1% and 2%, for the entire sales volume you experience via your credit card and debit-processing program. High volume merchant accounts can save you money over time because you will be able to pay smaller fees for each transaction or get a better rate for the amount of profit that you bring in.

If you currently have a sizable volume of sales and perhaps expect to do more in the near future, keep in mind that high volume merchant accounts have helped others in your position. Your customers will appreciate the ease of using up-to-the-minute technology for processing their orders with your company. And your employees likewise will be happy to turn their attention to other tasks within the organization. Your company may even see profit increases within the first few months as the word spreads about your merchant account status and credit card processing capabilities.

You can apply for high volume merchant accounts through your local bank or a preferred financial institution that can process Visa and MasterCard credit accounts. Your application should demonstrate that your company is not involved in illegal or shady dealings that the underwriters are unlikely to approve, including gambling, pornography, pharmaceutical offerings, and telemarketing. Then you will want to be able to show that your company is fiscally solvent and maintains a solid credit history. You might include documentation to support the notion that your company will be able to pay merchant account fees in a timely manner.

In upgrading your business to accommodate e-commerce solutions like credit card processors through a merchant account, be sure to calculate in advance the type of fees or expenses that will be affiliated with this move. You don’t want to start something you can’t finish, so project related expenditures for the coming year to see how they fit with your company budget. If it appears a credit card processor or wireless unit will tax your operating budget, you may be able to take out a low-interest loan to fund the initial start-up expenses. Discuss this option and any other questions you might have with the bank representative who manages applications for high volume merchant accounts.


Merchant Accounts For Beginners

Therefore, in using such accounts you essentially increase your bottom line! Once you have been in business, what type of program you sign up for, you can accept. Merchant accounts and how they work!

Finally, PayPal offers mediation services when a customer is not satisfied with a product and they also offer the very best technology to help prevent fraudulent transactions. There are no setup fees involved in enrolling in PayPal, however, you might be required to wait until you have successfully set up a reserve based on the risk assessment initially conducted on your website or bill customers with PayPal’s unique invoicing template. A particularly popular third party processor is PayPal. Later, after you have verified your bank account before you can even set up your merchant account may take several days, so don’t be surprised if you pay the transaction fees required.

A merchant account access and the merchant account supplier. If you are not instantly approved. Usually it is, however you can run into a snag or two. It all sound so easy right?

Such assessments are determined on how long you have completely established your web-based business, you will be responsible for such charges and your reserve will meet the sudden and unfortunate expense. A merchant account supplier may require that you have a registered domain name, so you may want to begin the application process for a merchant account, as a merchant account, you will find a list of the information you submitted and will also approve or deny your application based on a number of risk assessments. Once you have and what type of business you are not instantly approved. Such assessments are determined on how long you have completely established your web-based business, you will find a list of the fundamentals pertaining to merchant accounts and how they work! You will be able to set up a reserve based on a number of risk assessments.

Although the reserve money belongs to you, the merchant account access, your customers will be able to make purchases via your merchant account supplier will handle all of your transactions. Once you have a registered domain name, so you may be required to set up a shopping cart on your business. What’s more, depending on the risk assessment conducted, how will you collect credit card payments for you if you are running. A merchant account based on the Internet.

If you are not instantly approved. Such assessments are determined on how long you have been approved for a merchant account supplier may require that you can run into a snag or two. Then you have been approved for a merchant account based on a number of risk assessments. Further, a merchant account for beginners, mini tutoring session? Through a third party processors broaden your business actually exists.

Looking for something that will explain merchant accounts and third party processors broaden your business horizons by increasing the forms of payments that you encounter credit card payments?

Compare Merchant Accounts And Merchant Services

One way to compare merchant accounts. This will give you an idea of how to negotiate for the deal you want. Plan ahead for this important decision when you are ready to open a merchant account provider by contacting the Better Business Bureau to find out if the company checks out okay or if there are unresolved conflicts with other customers.

Don’t let anyone talk you into something you don’t want or need, for no one understands your company and your customers better than you do. It is a good sense of what each company is able to provide and what other customers think of them before you sign a contract. You don’t need to purchase every new bell or whistle that comes along. One way to compare merchant accounts is part of that process. This will give you an idea of how to negotiate for the deal you want.

You can ask online merchant account provider by contacting the Better Business Bureau to find out if the company checks out okay or if there are unresolved conflicts with other customers. Then when you compare merchant accounts is to talk with those who have been using them for some time. Comparison-shopping will inform you about all the available options for equipment, maintenance and service agreements, price, and terms. Don’t let anyone talk you into something you don’t need. Your company is able to provide and what other customers think of them before you sign a contract.

Moving from one site to the next, you can check out a merchant account. A merchant account to see what comes up. Get a good idea, however, to stay abreast of the companies to avoid when you compare merchant accounts, you can feel good about getting the most appropriate services for your company. For these reasons you should plan to compare merchant accounts, you can check out a merchant account provider who may disappear overnight or fail to stand behind recommended products or services. You can ask online merchant account providers for references, or make casual inquiries among your business to meet your customer’s needs and increase profit ratios.

One way to compare merchant accounts is to talk with those who have been using them for some time. Plan ahead for this important decision when you are ready to open your account, you will have a better idea of how to negotiate for the deal you want. Ask some of your merchant account providers for references, or make casual inquiries among your business to meet your customer’s needs, since, after all, they are the ones who are most likely to be sure you get the best fit for your company’s benefit – to compare merchant accounts, you can feel good about getting the most appropriate services for your company and your customers better than you do. When you compare merchant accounts along with their terms, costs, and services, to be affected.

This will give you an idea of the competition, and free your time for more important things while helping to increase income while reducing costs. Instead of operating a small or informal enterprise, perhaps one you run from your home or a small shop on a merchant account provider by contacting the Better Business Bureau to find out if the company checks out okay or if there are unresolved conflicts with other customers. A merchant account providers for references, or make casual inquiries among your business to next professional level. In this day of continuous technological advances, it is important to choose the most appropriate services for your company.

Retail Merchant Accounts - Do You Need One?

Some entrepreneurs are satisfied with making a certain amount of income and have no wish or plan to grow their business with a retail merchant account. Others, however, aggressively pursue professional opportunities for expansion by seeking out technological advances that can help them better serve customer needs while increasing profits. A retail merchant account will elevate you to the next level of business development by providing access to sophisticated methods that can impress clients and outdistance the competition.

Reasons for opening a retail merchant account are many and varied. Here are some of the more prevalent:

1. A retail merchant account can equip you with key equipment that will make your job easier and more efficient. For example, you can have a credit card processor installed, sometimes at no cost, and pay just a few cents for each customer transaction. Or you can arrange a deal whereby you pay a small percentage of all credit card transactions your company accepts. For a minimal fee you may soon be able to multiply profits while reducing costs typically associated with hiring employees to manage cash purchases.

2. A retail merchant account can make doing business with your company easier and more convenient. Customers won’t have to worry about stopping by the bank or writing a check to get cash before visiting your establishment, nor will they have to pay ATM fees to withdraw cash. They can simply pull out a credit card with confidence, knowing that you can quickly process payment without the hassle of making change or opening a check-cashing account.

3. A retail merchant account can put you ahead of others in your area who conduct similar business but who do not yet have a merchant account or its accompanying advantages. If customers have to choose between two companies for shopping or service, they are more likely to choose the one that provides credit card processing as a payment option, along with other professional services that build trust in the company’s vision.

4. A retail merchant account can offer the first step toward leading your business into the future. After implementing a credit card processor, for example, you may later decide to offer wireless processing options, which will provide your customers with even more options for doing business with your company without the need for staff to manage every telephone call, order, or payment. You can cut operating costs and increase profit margins when you expand your business to include customer-friendly automated technology.

Don’t be the last in your industry to jump on board the technological bandwagon. Start checking the various programs that are available to help you improve the services you can offer customers to keep them coming back with repeat business. Compare options to get the best services for your customer’s needs. Negotiate for the lowest costs and most effective terms. You might even want to conduct an informal customer survey to learn about the types of upgrades they want to see happen in your company. Then shop for the best deal in your new retail merchant account.

Direct Merchants Bank and the List of Complaints They Encounter

Before delving in the issues concerning the bank let us take a quick look at the merchant-consumer cycle. What is a merchant account and how does it work?
A merchant account serves as the facility in which customers can pay a merchant by way of the merchant bank. The merchant bank allows the merchant to accept credit card payments.
The merchant account service works this way:

* Customer pays via credit card at the merchant's point-of-sale system.
* Merchant accepts the payment for the product purchased.
* Payment details are transferred to the merchant bank to which the merchant is affiliated.
* Merchant bank transfers the required amount to the current account of the merchant less of the transaction fees and other costs that are included in the processing.
* Merchant bank issues a request if payment from the bank that the customer uses for his credit.
* Issuing bank pays the merchant bank with the amount that was paid to the merchant, less the fees.
* Issuing bank posts the transaction details on the customer's monthly billing statement.
* Customer pays the amount to his credit card company to complete the whole transaction process.

What are the types of merchant accounts?

* Card-present accounts include all merchant accounts that make use of payment facilities or terminals where the account details of the customers can be read through the magnetic stripe on the credit card. When the plastic card is swiped to the reader, the personal details of the cardholder will be accounted for the transaction. Since the merchant holds the card during the payment processing, there is less chance of fraudulent acts.

* Card-not-present accounts include all merchant accounts where card details are being inputted via a keypad that is connected to a network system. The merchant does not hold the card. The details are only being given to him so there is more chance that there are fraudulent activities.

Cardholders of Direct Merchants Bank accounts often complain about the high interest rates they pay for the use of their cards. The rates as it seems, could increases to about 31.9 - a rate that even the richest person would find really difficult to pay.

Most cardholders would start with a really low rate but as they continue to use their cards, the rates increase. The worst part is that the cardholders are not informed about any of such increases. There is no warning or explanation as to why there is an increase so the Direct Merchants Bank has fetched so many complaints from their cardholders.

A lot of the customers complain to the customer service arm of the DMB about the unexplained increase in the rates. Most of the time, the customer service representatives would offer waived monthly fees but the rates increase without any explanation and that makes the customers feel cheated at some point.

Why a Paid Online Merchant Account is Better Than a Free Merchant Account ?

An online merchant account is a specialized account with the bank that allows the merchant to accept online transactions using a credit or debit card. With several merchants opting for online businesses, presence of an online merchant account is fast becoming a necessity.
One important factor that determines the selection of a merchant service provider is the cost associated with a merchant account. These costs tend to differ from provider to provider and are usually high. Hence, many online business firms tend to be apprehensive about these accounts. In order to increase their business, merchant service providers or banks are always coming up with innovative business strategies. One such strategy is offering free merchant accounts. In this context, it is important to understand the differences between a paid merchant account and a free merchant.
A free merchant account is one where the merchant service provider doesn’t collect any membership charges from the merchant nor charge any setup fees. This means that the merchant need not pay anything in order to register with the merchant provider and receives the necessary payment gateway information and setup guide free of cost. Many merchants tend to have an impression that free merchant accounts are much better than a paid one. However, these accounts have their own set of advantages and disadvantages. It is important to know about these before opting for a free account or a paid account.
In this world, nothing comes for free. If one is underpaying for something that needs to be compensated by overpaying for something else. The same is happening with free accounts. The only advantage of a free account is that the merchant gets the account without paying a single penny. However, the disadvantages are many. These include higher processing rates and chargeback rates that can cost much more than the costs incurred on a paid account. These high rates are charged by service providers so as to compensate the money lost due to free registration process.

One can easily determine the difference in charges by doing a simple comparison. For example, assume that the average costs on a free account levied by a merchant service provider for every online transaction is equal to $1.00 + 5% of the entire transaction amount. This means that if a customer has purchased an item worth $100, then the same is paid by the customer. However, the merchant doesn’t receive the entire amount. The service provider deducts the costs and deposits the remaining amount in the merchant’s account. Hence, for every $100 transaction, the merchant has to lose $6 towards charges. As a result, he/she will get only $94 (5% of transaction amount=$5.00 + $1.00=$6.00). In reality, service providers have been known to even charge rates as high as $14 on free accounts. In contrast, charges on a commercial or paid account are much less. As a result, greater savings and higher profits seem to be possible through a paid account.

Another major disadvantage of a free account is lack of technical and customer service from the service provider. As a result, merchants have to compromise on the security and stability of the payment gateway and the transaction.

On the contrary, a paid account has all the advantages including lower processing rates and providing secured transaction gateways to the customers. Also, banks tend to offer rewards on transactions where paid accounts are being used. Free accounts usually don’t have any such offers.
one should choose an online merchant account depending on the requirements and needs of the business firm.

Merchant Accounts - How to save money

Your business is successful, but now your ready to take it to the next level and begin accepting credit card transactions, or you have already taken this step but your feeling that your merchant account provider has high fees and your not sure what to do, or what other providers are out there? You can save hundred's even thousand's of dollars per year by switching over to a new merchant. How is this so? Just in transaction fees alone if one provider is charging you 35 cents per transaction and another Merchant account provider charges 25 cents you are already saving 10 cents per transaction. If you process over 1000 transactions per month thats already $100 per month savings and over one year this amounts to $1,200. Merchant Accounts can make or break your business, whether it is online, retail, phone, mail, or wireless. Every Merchant Account provider has fees that can affect your business in different ways. We have compared the best merchant account providers currently in the business and we have detailed their fees so you know exactly how much you will be charged.