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