Today, majority of business establishments both online and traditional accept payments through credit card. This mode of payment is the second most preferred by customers. Though there are businesses that still don’t accept credit cards, they can thrive but if they want to be able to remain competent, they need to start accepting credit cards. In the case of online businesses, credit cards is the assumed mode of payment. Therefore, for businesses online to thrive, it needs to have the ability to accept online payments.
The merchant account industry produces millions of revenues and is more complicated than what most businessmen know. However, despite this fact, people are still being educated painstakingly in cash handling rather than accepting credit cards. The players in the industry contributes to the entire process and in the course of being part of this, they make the entire cost structure more complicated. The worst part is, getting a hold of a good information is very hard. Merchant account providers are the ones who provide half of o the information available about merchant accounts.
In the world of credit card processing, businesses work in different ways and thus affect the type of merchant account they will have. It is imperative that a merchant account provider sets up for the merchant an appropriate account. This will prevent the many problems that will arise if the merchant is not properly classified. Proper merchant accounts also help the merchant save money and protect against frauds.
Below are the types of business organizations that will find merchant accounts useful:
Businesses that are not personally in contact with their customers during a sale are in the classification of Card Not Present (CNP) accounts. The payments are accepted through the mail, fax, phone or electronic mail.
An Internet business is very similar to a CNP business. The difference between them lies on how a customer’s credit card information is obtained. The Internet business gets this information directly from the website using a form. A business isn’t considered an Internet business if the company has a.com in their name, the website advertises but doesn’t take payment, customers order by phone reading contents from the website, or the merchant uses a payment gateway to process transactions.
A mobile business is like the retail business except that the mobile business cannot process the sale in real time. The mobile merchant uses a manual imprinter and captures the imprint of a customer’s credit card and, with a signature, processes the sale shortly after.
There are business establishments that open only for a specific time annually, these are called seasonal businesses. Examples are landscapers, fireworks sales, holiday-based, and some trade show merchants. There are selected dates on their application, which indicate when they can close or open their accounts.
Apply now for a merchant account service and fix those payment problems. You can apply for a retail merchant account or whatever type is more suitable for your kind of business.