Merchant Account – Accept Credit Card Payment online

For start-ups and new businesses, it is difficult to accept credit card payments. Many credit card merchant account providers do not provide merchant account due to bad credit history. However, there are many third-party merchant account serviceproviders who bear the risk and provide the account so that start-ups can also accept the credit card payments.

Merchant account

A merchant account allows the acceptance of all types of payments like wallet, gift cards, credit cards, debit cards etc. The businesses can accept payments in many ways like mobile credit card processing, online payment, a point of sale payments, recurring payments etc. You can also manage to bill and manage customer profile via the merchant account. There are companies who provide merchant account, payment gateway, and other facilities. There are companies who provide all in one solution. Due to the increasing presence of e-commerce companies are coming with various merchant solutions.

Merchant account and payment gateway

Traditionally merchant can accept online payments with the help of merchant account and payment gateway. Through merchant, you are able to accept the credit card payments by  payment gateway is a virtual terminal that connects the website page with merchant service account. For example, with the help of POS card machine you accept credit card payments. Similarly, payment gateway connects the bank and card issuing company to process the payments. Merchant has to pay a fee for processing each transaction.

All in one service providers

There are companies like PayPal who have all in one solution which makes setup easy for start-ups. At the favourable transaction rates, merchant can accept the payments. They charge you for sharing their portal. They do not charge any maintenance or setup fees. It is convenient for new companies.

Shopping cart

The shopping cart is the software that allows an item to be added before checkout. It calculates the number of items costs with shipping cost and handling cost. It is also connected with the merchant account.

How fees are charged

The fees vary with a company to company. In general, it is charged on each transaction like for e.g. 0.5 % on each transaction. Merchants who are having a good turnover pay lesser fee or negotiate with the merchant service provider.

Nowadays cash and check payments have been reduced. People are more prone to online shopping hence make payment via credit card or debit card. A Merchant account allows the merchants to receive the online payments easily. The businesses are gaining the advantage by developing e-commerce websites and with the help of merchant account businesses are increasing the turnover. It does not cost much to possess the account. It enables better performance and sales. The customer is also convenient to use websites and mobile application for shopping. This way not only merchant but customer is also happy and satisfied with the online facilities. Merchant account facilitates many benefits directly or indirectly to customers, banks, and merchants.