Finding An Internet Merchant Account: A Guide For Small Businesses
The right internet merchant account will let your business take payments online while fitting your budget, but that’s not all an internet merchant account provider can do for your business.
Whether you’re launching an online store or you simply want your foodservice business to accept online orders, accepting credit card payments online will require you to get an internet merchant account.
Just know that even the best online merchant service providers are not created equal. When choosing an online merchant account for your eCommerce business, you’ll need to know how a merchant account interacts with the other elements necessary for selling online, such as payment gateways, payment processors, and eCommerce website builders.
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What Is An Internet Merchant Account?
A merchant account is a specific type of business account into which your customers’ money is deposited after they use their credit or debit card to make a purchase from you. After these payments are verified, the money is transferred to your business bank account, which is entirely separate from your merchant account.
You have no control over the merchant account — it’s just the middleman between your customers’ money and your business bank account.
Why include this middleman at all? Wouldn’t it be easier to just accept credit/debit card payments and get the funds deposited directly into your business bank account?
Unfortunately, credit card processing doesn’t work that way. When your customer pays you, the transaction ultimately still involves two other major parties: the issuing bank and the acquiring bank.
- The issuing bank grants the customer cards and is responsible for collecting any payments from the customer.
- The acquiring bank requests and collects payments from the issuing bank and then releases them to the merchant. The acquiring bank has to ask for the funds from the issuing bank, which has to verify that the customer has those funds available and then transfer them, making for a complicated payment process.
The merchant account essentially functions as a holding space during this process or even as a sort of line of credit.
How To Open An Internet Merchant Account
Let’s go through the steps you’ll take to open your internet merchant account.
- Select the credit card brands you want to accept.
- Determine the pricing model that best fits your business (flat-rate, interchange-plus, etc.).
- Look for the merchant services provider that meets your needs.
- Get your eCommerce site ready to sell.
- Get all the required documentation ready.
- Submit your application to your chosen processor.
What Can An Online Merchant Account Provider Do For Your Business? Features To Look For
Let’s go through some of the features that may be included in your internet merchant account package.
How To Choose The Right Online Merchant Account Provider For Your Business
We know we’ve just hit you with a boatload of information. If you’re feeling overwhelmed, don’t panic! Merchant accounts are Merchant Maverick’s original specialty, and we’re here to help you delve into the essence of online payment processing costs, features, and provider options. We’ll also warn you about the practices and services that should be avoided.
Now that you’ve learned more about the world of online merchant accounts and what they involve, you’re ready to explore other aspects of online sales. Thankfully, from PCI compliance to virtual terminals, we stand ready to help!