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An overview of merchant accounts for the beginner

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An overview of merchant accounts for the beginner

  1. 1. United Bank Card AcceptWithUBC.com An Overview Of Merchant Accounts For The Beginner If you have never used a merchant account before, you may need some help understanding what it is. These types of accounts are very beneficial in the technologically focused business world of today. Basically, these accounts are what make it possible for merchants to take payments through credit cards. There are a lot of people who simply do not carry cash around with them anymore because so many purchases can be made directly over the internet or through a physical credit card system. For businesses or single entities who want to be able to accept credit card payments, it is essential to set up an account. When it comes time to set up a , there are some different options to consider. Certain kinds of businesses do better with some of the merchant-type accounts than others. The three basic types of accounts are: retail accounts, MOTO accounts, and internet accounts. Here are some important facts about each of these types of merchant accounts. The first type of account, the retail account, is a great choice for many businesses. This is a common choice for businesses who participate strictly in face to face purchasing, such as cafeterias and grocery stores. With these accounts, merchants generally have very low fees. There are, however, certain rules that must be followed. For most retail accounts, a credit card terminal must be used where customers swipe a physical card through to make a payment. If your company does not need to take payments over the phone or over the internet, this may be your best option. The second type of account, the MOTO account, is another popular choice. MOTO, which stands for Mail Order or Telephone Order, makes it possible for merchants to accept payments over the phone or through the mail. With these types of accounts, fees are generally slightly higher because the credit card is not actually being swiped through a terminal. Instead, the credit card information is generally taken down and entered into some kind of a computer based credit card system or physical terminal. Many businesses use a MOTO account when they need to be able to take payments in a variety of ways without being limited to a physical credit card swipe. The third common account, which is known as the internet account, is quickly becoming more and more popular. With an increasing number of internet users, internet sales have skyrocketed over the last few years. With the profitability and convenience available on the internet, many companies have turned to an entirely internet based sales structure. For these types of businesses, an internet account is a very useful option. Instead of using a credit card terminal, merchants use a virtual terminal so that payments can be made right through the internet. In many instances, internet accounts are offered with web hosting services. Now that you know a little bit about these important accounts for merchants, you will be better able to choose which account to use. Your business structure will have a major effect on the type of account you can have. Before selecting an account, make sure that you understand all the particulars about transaction fees, available services, and account regulations. If you are unsure which account to choose, make sure that you take the time to do some additional research. Document Tags: payment processing, credit card processing United Bank Card http://www.acceptwithubc.com/ Page 1

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