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What is a merchant account?

Before you start your distance selling business, you need to get a merchant account to be able to accept certain payment methods. All right, but what exactly is a merchant account? In today’s economy, there are many business owners who have less than perfect credit. They may have been overextended using credit to keep their business afloat or they have had mortgage problems. In some cases, bankruptcy may have been the best solution for some business owners.

Obtaining a top high risk merchant account with bad credit, bankruptcy, or tax liens can be difficult. This is especially true for startups and those “not card-present” or merchants who call themselves “moto.” If you’ve been turned down by other credit card processing companies due to bad credit, make sure and apply now with us here at eMerchantBroker.com for fast and secure approval!

A merchant account or commercial account in denomination is the same and is a type of bank account that allows companies to accept payments by debit or credit cards; it also serves as an agreement between retailers, and a commercial bank and payment processor for the solution of credit card and / or debit card transactions.

 The merchant account

If the e-merchant wishes to offer more means of payment in order to improve its conversion rate, it is possible to choose several buyers to have more than one merchant account. It is also possible to use a simpler solution, such as Ogone or Clicshop, which enables several means of payment to be activated simultaneously with different buyers, thanks to a single contract.

Two types of merchant account

The merchant accounts are distinguished by the means used by traders to gather and collect information from the payment card either from the card swiped through a reader or presence of cardholder (retail with a terminal point of sale or shops with a portable wireless terminal), either with the card code or in the absence of the card holder (purchases by e-mail, telephone or internet).

In this second category, we therefore find what interests us, namely the Internet merchant account. It concerns merchants selling products or services via their website and therefore receiving online payments in real time, using an automated system or a payment gateway. Obviously, both the card holder and the merchant are physically absent at the time of the transaction. A merchant account is a special type of bank account used to send and receive funds using certain means of payment (bank card, etc.). Banks and acquirers, that is to say payment organizations, offer these merchant accounts.

The services to process a Mercantile Account are provided by the bank or by third party processors of merchant accounts. These services include the authorization of credit cards, the establishment of funds through card issuing associations (Mastercard, Visa, etc.), deposit of funds in checking accounts, merchant billing, and reporting of account activity. .

Today most credit card transactions are sent electronically to commercial banks for authorization, capture and deposit processing. There are several methods for presenting a credit card for sale “the system”. In all circumstances, the entire magnetic stripe is read by a swipe through a credit card terminal / reader, a chip is read, or the credit card information is manually entered into a credit card terminal. Credit, a computer or website.