Merchant Accounts 101 Understanding Their Role In Your E-Biz
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Merchant Accounts 101: Understanding Their Role in Your E-Business
Summary
A merchant account is crucial for your e-business, allowing you to accept online payments via credit cards and e-checks. Each day, your transactions are processed and held for verification to ensure security and satisfaction. Once verified, funds are transferred into your business account.What a Merchant Account Is
A merchant account is a specialized bank account enabling your e-business to handle online credit card and e-check transactions. Each day, the bank processes these transactions, holds the funds for verification, and performs security checks. If everything is in order, the money is transferred to your business checking account.What a Merchant Account Isn't
Many confuse merchant accounts with other components of a payment system, but they're distinct elements:- Not a Shopping Cart: A shopping cart is software that allows users to collect items to purchase and processes their total at checkout.
- Not Authorization Software: Authorization software acts like a digital credit terminal, checking address verification, running fraud detection, and ensuring sufficient credit is available for the transaction. This software enables instant approval.
When selecting payment solution providers, ensure your merchant account, shopping cart, and authorization software are compatible for a seamless payment process.
Is It Difficult to Get Approved for a Merchant Account?
Approval processes vary by institution. Some require corporation papers, tax ID, and business banking information, while others are more lenient, even offering pre-approval.Challenges can arise if you have poor credit. However, some institutions accept co-signers. Michael Mack from TruthInProcessing.com shares that less than half of 1% of their applicants have been denied since their company's inception.
Why You Need a Merchant Account
To maximize sales, you must offer various payment options. Relying solely on PayPal might deter potential buyers who prefer other methods. Without a merchant account, you risk losing customers unwilling to navigate PayPal's alternative processes. As Mack says, if it takes longer to pay than to find and buy the product, customers will look elsewhere.Ensure your e-business meets customer expectations by having a reliable merchant account for seamless transactions.
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