| While the word e-commerce has been in | | | | Note that different banks have different |
| circulation for some years, some retailers still | | | | requirements for its merchant applicants. Those in |
| have no idea what it is. For a better understanding | | | | the high-risk category (adult industry, gambling, |
| of the term and the processes involved in taking | | | | pharmaceuticals, MOTO, etc) have very limited |
| your business to the next level, this article will | | | | resources for acquiring merchant accounts. Credit |
| discuss the internal workings of the world of | | | | card associations like Visa and MasterCard impose |
| online processing. | | | | very strict standard when it comes to high-risk |
| It starts out with acquiring a merchant account. | | | | accounts. They are often monitored for |
| Unlike offline businesses, online merchants do not | | | | chargeback ratio and other factors. |
| have the luxury of having a physical point-of-sale | | | | While the process may look difficult at first, it is |
| terminal to start processing their sales. What they | | | | fairly simple and the benefits are far greater than |
| have instead is a software that enables them to | | | | the initial effort that you'd have to exert. Having |
| accept purchases and payments. A virtual | | | | an e-commerce website automates your |
| shopping cart lets the buyers check-in what they | | | | processes and makes your site a global affair |
| intend on buying. The upside to this modern | | | | with the ability to accept payments |
| function: it lets the buyer think their purchases | | | | round-the-clock. |
| through first. | | | | Merchant account providers like eMerchantPay ( |
| The shopping cart is connected to a payment | | | | offers services suited for all types of merchants, |
| gateway. In essence, a payment gateway is an | | | | including those in the restricted industries. This |
| interface that facilitates the transactions between | | | | particular service provider offers superior |
| the financial networks and your website's virtual | | | | gateway technology with effective fraud |
| POS. Payment gateways allow real time | | | | protection, fast application and approval process, |
| transactions - including authorization, processing | | | | diverse solutions to cover most merchant |
| and management. It is one of the factors that | | | | categories and sizes and on-time payout on a |
| allows online merchants to receive credit card | | | | weekly basis. |
| payments. Be aware though, that having access | | | | There are many other merchant account and |
| to a payment gateway does not mean you would | | | | payment gateway service providers out there, so |
| be able to automatically receive payments. The | | | | be sure to go through each with a fine-toothed |
| transactions have to be routed through financial | | | | comb. Find out what they can offer you other |
| institutions. | | | | than the basic merchant account acquisition. |
| This is where the merchant account comes in. A | | | | Those that have multiple quality acquirer banks |
| merchant account is your key to receiving online | | | | are more beneficial for you, as they will be able |
| payments (such as paperless checks and credit | | | | to offer you more uptime. Another consideration |
| cards). It is a type of bank account granted to | | | | would be the cost. Find out if the service provider |
| merchants by acquiring banks. Merchants have to | | | | charges you on a monthly basis or per |
| go through an approval process to obtain said | | | | transaction. Make sure you also ask if they charge |
| merchant account. | | | | any upfront fees. |