A third-party merchant account provider, like Instabill, is a business entity that accepts credit and debit card payments on behalf of another business entity.

1. Third-Party Merchant Accounts
By Instabill

2. Third-Party Merchant Accounts
A third-party merchant account provider, like
Instabill, is a business entity that accepts credit
and debit card payments on behalf of another
business entity.

3. Third-Party Merchant Accounts
Such a scenario is extremely beneficial, and
sometimes crucial, when starting and operating
an online or small entrepreneurial business. While
most big corporations easily can obtain their own
merchant accounts, some businesses do not
qualify for processing services from traditional
bankers and merchant-account providers. Third-
party processors give these businesses another
chance.

4. Third-Party Merchant Accounts
When customers visit an online store provided by
a business that uses a third-party processor, they
may browse the site until they are ready to order.
At that point, the website redirects the customers
to the account provider. Many, like Instabill, give
clients the ability to customize the order form,
creating a seamless transition apart from the
change in URL.

5. Third-Party Merchant Accounts
The setup and application costs for this type of
operation are low, especially when compared to
having an independent merchant account. The
procedure is easy and e-commerce can begin
quickly. Fraud protection software is included.
The drawbacks are few, but transaction fees
could be higher than with a traditional processor,
and the customers’ credit card statements bear
the name of the third party.