Introduction
Beginning an online business is very easy these days. But at the same time accepting other payment methods like a credit cards, debit card is exactly where the things become risky and confusing. For all of these you require an infrastructure which is in the right place in your business that will permit you to accept online payments, work out on them and then get the actual funds. Also, you can broaden your horizons on, ecommerce merchant account providers & learn more. So, you need a merchant account and you have many queries on it. Let’s loo further into it, when you switch to Pay.com, you get a complete suite of merchant services, comprising of merchant account. Besides all of that, you can also save yourself from the difficulties of complicated applications process and begin accepting credit cards & other payments in your website in few minutes.
Merchant Account Defined
Whenever a buyer uses a credit card to buy something, the money is not sent immediately from the issuing bank to your bank. There is a minor process that needs to be fulfilled, and that money is placed in a special account and that special or different account is known as merchant account. And, this process will be there till the transaction is cleared and approved. Then, this income will be transferred to your account (business account), from where you can access it. It will take you around 1-3 days to access the funds from your business account. Merchant account can be called as a middleman between the customers credit/debit card -bank account and your bank account, when the payment is processing. So, as a merchant account holder, you don’t have direct use to your account. It is not a simple bank account; you will not be able to use it to make or take funds.
Important Points to Consider
- Merchant account is a middleman account which is holding the income or funds, while in a transaction which is processed or processing and is not like an old bank account.
- A merchant account will directly connect with credit card networks and issuers like that of MasterCard, Visa in order to make sure that the transactions work out.
- Merchant accounts can be provided by banks and these banks are known as acquiring banks.
- Merchant accounts are those accounts which provide an added level of security and protection against fraud in card payments.
- And, when you switch to a merchant account, it will comprise of signing a long-term contract and paying the processing fees which is ongoing.
Conclusion
A merchant account is created through a complete account agreement which is between the merchant acquiring bank and the also, the business. And, lastly, the agreement has all the terms and conditions which also includes the fees’ structure.
