The Benefits of a Merchant Bank Account

August 28, 2011 · Posted in Business, Merchants 

If you are a businessman who wants to accept credit card payments, then you should own a merchant bank account. With this account, all you need to have is a computer with a reliable internet connection. Compared with mobile credit card processing, e-transactions have wider applications and do not have the same limitations presented by distance differences.

Some merchant services companies not only allow you to accept credit card payments. Some of them also act as payment gateways so you can process payments with them faster.

A merchant bank account can be of several types. These include the local account, high risk account, and offshore or international account. To know the differences among the three and determine the option’s suitability to your needs, read below:

• Local account. It allows you to accept credit card payments easily and conveniently but only locally. If you plan on sticking with a local business, then you can have this option. This is a regular account and does not have the extra features present in the other types.

• High risk merchant account. It is specifically designed to cater needs of high risk businesses. A business is high risk if it has low sales volumes that the firm will have difficulty shouldering the service fees which often include paying for security software and tools, very high sales volume which makes the business susceptible to fraud, unregistered based on the local law, has a bad credit history, and if it involves a lot of internet feature such as music downloads, software, applications and other things that often require the consumer to use internet to acquire the product or service. Some banks, acquirers and e-providers do not readily grant applications from a businessman who has a high risk business. Typically, this account is available only in some credible e-service providers.

• International merchant account. It is the only type that allows you to accept credit card payment from anywhere in the world, anytime. This account combines the features of a regular merchant account plus other features. With the addition of features also comes what may be considered a hefty price but if you want an online presence, then the costs you will have to incur becomes negligible compared to the benefits you will get.

You can have the account by signing up with a merchant bank, an acquirer, and e-service providers. Whichever of these three you choose just make sure that they are authorized to process the transactions, If you are choosing a merchant bank to acquire the services for Visa and Master card, for example, you have to be sure that such bank is a registered member of those card companies.

For convenience and security reasons, merchant banks and e-service are the two top choices often picked by consumers and business owners. If you are planning to have one of those merchant accounts, other things you need to consider include monthly service fees (fees vary and international services often have the highest charges), service availability (banks and providers have a 24/7 virtual terminal that allows you to transact anytime, anywhere), and system reliability (as e-providers are designed specifically for credit card processing needs, you can expect faster and more efficient transactions).


Leave a Reply

You must be logged in to post a comment.