Merchant Account Basics You Should Know

Dec 4, 2012 by

Merchant Account Basics You Should Know

Article Written by : Manufacturing Stoke
New business owners often believe that getting a merchant account can be confusing and a bit overwhelming. But there are three basics that you need to know before getting an account. You need to know what a merchant account is, who offers an account and how much it will cost.

Whether have you have a physical store or you run an e-commerce site, you will need to be able to process credit cards. Many people these days are using credit and debit cards more and more. They are more secure and more convenient than cash. You will need to open a merchant account with a bank or through an online service. Once you sign up for an account, you will be given the correct equipment or software to run the customer’s card through.

Basically a merchant account is a system where you are able to handle credit card or debit card transactions in real-time. It makes things easier for you because it takes just seconds for a transaction to be approved or rejected. There is a contract that will exist between you and the provider. It is important to read and understand the terms of the contract.

You can obtain a merchant account through several financial service institutions. You will find that quite a few people will use a bank as their provider because it is secure and reliable. However, banks do usually have tighter rules and a strict approval process. Another popular option is an internet service provider. There are literally hundreds of them so you need to find the best one for you.

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