Internet shoppers naturally prefer merchant websites that accept all credit card payments, hence the growing need for low-cost, easy-to-operate merchant accounts. For their part, merchant account providers are constantly reinventing themselves to provide complete security for credit card processing.
A merchant account is essentially a contract or agreement between a bank and a merchant, or a merchant account provider and a merchant. The merchant wants to accept payment for their services/merchandise through card transactions from a particular brand of credit card. The acquiring bank extends credit to the merchant, processes the customer’s credit card information, and approves the transaction. In addition to such direct trading, trading accounts can also trade through intermediaries, called service providers. In this case, the intermediary, for example Paypal, provides payment services to their clients, who have business accounts with them. Paypal, in turn, has a merchant account at a bank.
Payment is made through a payment gateway. A payment gateway is simply a place where you pay, like the cash counter in a retail unit. Only here it is virtual. The difference, however, is that each business can have its own box, but in this system, several virtual stores (e-commerce sites) use the same payment gateway whose sole purpose is to channel the customer’s credit card data . Business account providers log in and enter credit card numbers (which are encrypted). Alternatively, the payment gateway may be linked to the shopping cart on the merchant account provider’s site. Either way, this part of online payment processing barely takes a minute.
The customer places an order along with credit card information, the information is sent to the payment gateway, which then sends it to the merchant’s acquiring bank. The bank sends the information to the card association, which in turn sends it to the card-issuing bank, which verifies that available balance with the customer. The issuing bank then approves or rejects the transaction, providing a reason for the rejection.
Several merchant account providers offer free credit card terminals and online payment gateways and free payment gateway software when you open merchant accounts with them. There are others that allow free trading accounts with low transaction fees. The transaction fee and discount rate (both together make up the total processing fee charged by the account service provider) are lower for credit card swipes. Then there are merchant discount accounts that charge a very low fee for the suite of credit card options they offer their customers.
For these reasons and more, choose Ace Merchant Processing for your merchant accounts. On the one hand, our ISO/MSP certified business services are truly low cost: free setup and terminals and a monthly service fee of only 1.64% +19 cents. In addition, we are proud to offer a fraud-proof system and a happy service 24 hours a day, 365 days a year, for all types of businesses. And the reason you simply have to set up your account with us is that we give you same day approval!
