Credit Card Merchant Accounts

A traditional merchant account is the most basic way to start accepting credit cards for your business. A credit card merchant account allows you access to an electronic processing network that permits you to have customer payments from credit and debit cards deposited into your account.

While traditional merchant accounts have long been a staple of physical storefronts, there are plenty of companies that provide these services for online transactions as well. However, it is important to note that a traditional merchant account for online transactions will rarely provide you with anything else in terms of Internet support and capabilities.

What a credit card merchant account does

Traditional merchant accounts facilitate the use of credit cards. You basically pay the merchant account provider to process credit card and debit card transactions. The merchant account provider communicates with the customers’ banks and credit card companies, and then collects the payments, and then deposits them into your own bank account (subtracting the fees and charges, of course).

This leaves you free to run your business, and allows you to become more convenient for customers. More and more people prefer using credit or debit cards, and it is important that you serve your customers well.

Benefits of a traditional credit card merchant account

There are several benefits to having a merchant account. Some of them include:

• Ability to accept credit cards. This is the main benefit of traditional merchant accounts. They allow you to accept credit and debit cards, which most shoppers use now. Additionally, it can also help you expand your online and phone sales offerings.
  
• Someone else does the work of collecting payments. It is possible to collect money from the credit card company or bank yourself, but it is time consuming. With a traditional merchant account, it happens quickly – by someone else. This leaves you free to actually run your business.
  
• It is faster. You get the money faster with a traditional merchant account. Additionally, the electronic verification process can ensure that there is money available for the customer. This means that you run a lower risk of chargebacks. If the money isn’t available, in most cases you know immediately and can halt the sale.

In today’s world, it makes sense to have a merchant account and to have the ability to accept credit and debit cards. Getting a merchant advance to get things started can be simple.

Is a traditional credit card merchant account for everyone?

For most businesses that have a main physical location and may do some sales over the phone and Internet, a traditional merchant account is usually sufficient. However, if you want to build an online store (rather than just accepting orders and payment through your business Web site) it might be a better idea to look into an integrated merchant account.

Another consideration is how much business you do, and whether there is a high risk of fraud. If you do most of your business over the phone or online, a traditional merchant account may not be the best choice, since they charge high rates and fees for high risk. Additionally, if you do not move a lot of merchandise regularly, the minimum account fees may start to add up. In such cases a personal merchant account may provide you with better services.

Carefully consider the needs of your individual business before making a decision about a credit card merchant account.