Frequently Asked Questions About Merchant Accounts

Accepting Merchant Accounts Online FAQ

Merchant Account FAQ

What is a Merchant Account?

A merchant account is the central bank account that consolidates your payments from credit cards, debit cards, electronic checks and other payment processing services. Opening a merchant account lets you accept virtually any type of payments from your customers, and offers you the widest possible means of handling these payments.

Merchant service companies provide businesses with the ability to process credit card transactions online. This is done by setting up your business with an "internet merchant account"... which is nothing more than an actual bank account which enables the credit card networks to route funds to you.

Merchant accounts and accepting credit cards online can be the most important step you need to take to enter the world of internet commerce. If you need a merchant account and want to increase your bottom line by processing credit cards online just get your own merchant account with a reputable Merchant services company and start accepting credit cards.

How much does a merchant account cost?

Merchant accounts at some companies are extremely reasonable, about $100-200 setup fee, $20-40 per month, around 2-3% discount rate and 30-50 cents per transaction. There should be rates pages for each service on the Web site, and be sure to examine closely for any hidden charges before signing on the dotted line. With some companies If You Don't Process You Don't Pay, this is helpful if your a seasonal business.

How Many Merchant Accounts Can Someone Have?

Most of the time there is no limit to the number of merchant accounts you can have for the same monthly fee. So, if you need to accept credit cards at your store and on your Web site, and if you wish to accept checks in check conversion, batch electronic checks or with check guarantee, the one monthly fee pays should pay for all your services. Of course, each type of processing has its own transaction fees and/or discount rates, which are the only incremental payments you need to pay when you have multiple merchant accounts.

Is having a merchant account the best way to accept online transactions?

For most merchants, having a merchant account is the most cost effective means of accepting credit card payments. It is not recommended to use an outside sales company because the low start-up fees are quickly outweighed by the high processing costs. Look for a low cost online shopping cart with your merchant account, with a secure Internet payment gateway service that your hosting company or ISP is familiar with. Online merchants can also perform so-called "offline" payments, payment processing by touch-tone telephone, fax machine, or "virtual terminal." 

Recommended Merchant Account Websites

Visa USA - Visa is the nation’s leading payment brand and the Visa USA  has information about Visa, Visa credit and debit cards, and more.

Accepting Visa - Information from Visa about accepting credit cards, technology, and marketing programs for businesses today.

ECHO Credit Card Processing - Features Credit Card Processing, Merchant Accounts and Check Payment Processing Services.  ECHO's credit card processing lets you accept credit cards like Visa, Mastercard, AMEX or Discover. With their credit card merchant services you can use your choice of POS terminals, Internet merchant accounts, PC software, or credit card processing by fax or Touch-Tone telephone.

Reviewed Merchant Account Sites on the Internet

InfoMerchant - Merchant Accounts - www.infomerchant.net/
Provides merchant account services and CC terminals, and gives Help with Credit Card Processing, Tutorials, Guides, and an FAQ about Payment Processing Services and POS terminals.