Understand The Basics of Merchant Account

When anyone starts a business they will need to consider how they expect to process credit or debit cards to channelize their online transactions and the process that does it all is called as merchant account.

You can find out variety of different accounts that are available for you and then you need to know which one suits your needs best. This will depend on the type of business and physical set up you have available for you company because those days are gone now where business only accepted cash or paper check. Nowadays we are living in a digital world where digital money is the way to pay. To let your business have a chance, you need to have a merchant account that does the accepting of credit cards or debit cards. Having a consistent credit card processing account to do so is very important and depending on the type of business you run you may take cards physically in your location where the customer would actually physically swipe the card. In addition you may also obtain the information over the internet through your online webs store. Merchant account ensures all this and some of the notable characteristics are-

  • Merchants accounts are accounts that has a band or payment processing center that let you physically accept and draw money from the debit or credit card for your businesses products or services
  • Varieties of platforms exist including physical locations or e-commerce and telephone processing. With the ease of accepting credit cards it will allow you to have customers from all the world opening many opportunities for you to grow your business
  • You will have two types of merchant service accounts which are card present and card not present accounts and these basic types also have a variety of subgroups as well which we will discuss in detail below
  • In card present account you card is present at the time of swiping the card on the transaction and this is the type of transaction where the merchant is able to take the physical credit card from the client and swipe it with the help of magnetic card reader
  • Such type of processing accounts include very low risk as the customer themselves is present when they make the purchase and are required to sign that will show they made the purchase. Such account will also let you have the lowest fees and rates
  • Different physical retail locations want to use this type of account because it is most convenient for their customers and will cost them the least amount of money in the long run. This merchant account is also important for a retail location
  • At the time when a vendor has a portable credit card machine then this is called a wireless merchant processing account and in this the vender will still swipe the customers card the same way but the actual credit card machine is portable and wireless that will allow for portability and use of the machine in variety of different locations

These were some common features of Merchant account who’s all the benefits you may also appreciate with Paytm.