Skip to main content

A Clear Picture of Online Merchant Account Services


Making payments through credit cards is something third-party merchant accounts provide. Though these customized accounts are not exactly like real merchant accounts they do serve the merchant the same way. Before starting with third-party services, it is important to understand the way they work. You must know that though you are the one who owns the services and products when it comes to selling, it is the third party doing it. In other words, you act as a supplier and drop shipper.

Third-party account Vs regular merchant account

·         The first difference between the two is that here, i.e. in a third party, funds are processed via a large bank account followed by discretion to the individual merchants. Clearing and settling transactions this way escapes the rules designed by federal & state bank regulations besides MasterCard and Visa. These reasons put such accounts into challenging situations from state banking regulators.

·         Second difference is that here, customers are kept away from the shopping cart for some time and ordering takes place in that duration. Generally, third-party processor put their logo and brand on the payment page taking away from the professionalism and overall flow of the shopping cart.

·         Third and the last difference is that these online merchant account services distribute funds either once a week or once a month.

The benefits

Getting started with these online merchant services is very easy. Less personal details are required and acceptance criteria are not strict. The fee charged is also less, which is very helpful for smaller businesses.

The drawbacks

Such services have higher discounts and transaction fees. Customers find it difficult to trust such agents, as they have negligible information about them.

Suitable for your business or not?

If you are into selling risky items or have had trouble getting approved for other merchants' services, this is the only choice you have. Another reason is you have a new business and are unable to pay a monthly fee.  


Read More: https://paycronus.wordpress.com/2016/05/10/merchant-service-accounts-and-its-importance/

Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

Offshore Merchant Account: Why Your Business Need it?

Credit card payments have improved the prominence of many online businesses. If you have an eCommerce site, it will certainly do the same for you too. But then you will require to make certain that the offshore merchant account system you select is protected and secured for any kind of payment transfers. Getting an offshore merchant account would be a prudent thing to do. There are offshore merchant account providers in the market these days who can assist you with this. A business may not be able to run without having a merchant account as it allows the business owners to hassle-free credit card transactions. An offshore merchant account allows you to get away from paying high taxes. It gives you the chance for international trading, whereby offering multicurrency accounts.  Moreover, it also improves the potential of the company. By having installed, you can anticipate acquiring higher sales every month. Also, it decreases the tax liabilities of your business. With this,...
26 comments
Read more

Why Businesses These Days Swear By Online Payment Processing?

If you own a small organization, you must be accepting payments via checks or cash. Though this seems easy and working for you at the moment, the rapid growth of credit card processing will surely affect it later. This is because every business is turning towards online payment processing services and accepting cash or check is reaching the edge of extinction. Well, there’s nothing to feel worried about, as online payments offer a number of advantages to the business as well as its customers. Nowadays, consumers feel more comfortable paying online. Therefore, websites that still don’t allow customers to use credit or debit cards are going out of step. Speed up the process There is no denying the fact that online payment processing is faster and better than manual payment. This is because there is no need to wait for the check to arrive or keeping any eye on it to see whether it’s clear. Right from submitting the payment to updating the bank account takes just a few seconds ...
8 comments
Read more

How To Choose The Best Payment Processor?

  Choosing the best payment processor for your business can be tricky considering it involves so many factors and variables. As a business owner, one might be perplexed as to which model fits their business best and minimizes losses in terms of chargebacks and friendly frauds. However, there are several guidelines and tips out there to solve this mystery and chalk out a clear checklist to determine the payment processing services one needs. If you are a startup or small business, laying down the foundation of your e-commerce business and setting up a payment processing system to receive money from the customers becomes imperative. It becomes difficult to find a reliable payment processing service sometimes, it is mainly because:     1. Your business is classified as high-risk.     2. You are a newcomer or an unknown brand or business.     3. If payments take a long time to process.     4. If there are more ‘card-not-prese...
6 comments
Read more