Accepting Credit Cards
Now-a-days, we can observe that most of the people are interested to pay their payments through electronic payments by credit cards because it is the fastest, easiest and secure to pay rather than cash payment. So, if a merchant wants to accept credit card, he should have an Internet Merchant Account (IMA). For this, you have to apply for it with a bank or any merchant account provider. In a broader sense, your bank act as an acquirer which confirms the available funds authorizes transactions with the issuing bank of credit card. The funds are then transferred to your account minus the applicable fee. The issuing bank’s charges are called as interchange fees and your bank’s charges are called as acquirer’s fees. Accepting credit cards will increase the sales of the merchant at the same time it reduces the risk of the customer.
Merchant Account Set Up
Technology is growing with rapid pace and with the help of it we are innovating latest and sophisticated facilities like e-payment, e-billing and e-commerce. The people are interested in them instead of cash payments. As a merchant, your business also should be upgraded with the e-commerce other wise you will huge amount of sales. You can accept e-payment through credit or debit cards, or net banking, when you have a merchant account. It is just like a bank account that allows e-payments. Merchant account set up will take place when an agreement between an acceptor and a merchant acquiring bank for the settlement of e-payments. There are number of merchant account providers are offering different discounts at the time of merchant account set up. You can observe that different fees are there in merchant account set up. Some of them are set up fee, monthly fee, AMC, annual fee, fraud security fee and processing fee. You can find them in online.
Merchant Account processing
Merchant account is a type of bank account that allows e-payments like credit or debit card and online payments through net banking. Merchant agreement is an agreement with the acquirer or bank for the settlement of card payments. Some times it may be payment processor, Independent Sales Organization (ISO) or Merchant Service Provider (MSP) also a party to the agreement. Merchant account is necessary in these days because all are willing to pay by e-payment instead of cash payments. If you have no merchant account, you will loose huge amount of sales. Merchant account processing is very simple and easy process. After approval of your merchant account by the merchant service provider, you have to get one card processing terminal for your point-of-sale purchases. The latter, can read the information of a swiped card and transfers the transaction details to the issuing bank and then approves the transaction and transfers the funds to the merchant account’s bank. Merchant account processing will take only a few minutes.
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