A merchant account is an account that allows merchants to accept credit card payments. They can be obtained by means of a bank, credit card or another payment processor. Every trader who wants to take credit card orders must establish a merchant account.
There are three main types of merchant accounts to choose from…
Retail merchant accounts: This type of account usually offers transaction costs lower, but often have restrictive rules. Retail merchant accounts require that a very high percentage of the turnover of credit cards is made with “card-present” and that the card is “swiped” through a physical credit card terminal. Retail accounts or offshore merchant accounts are usually associated with businesses such as restaurants, supermarkets, and small hotels. This type of merchant account is best for traders who do not plan to do business by mail or online at any time.
MOTO merchant accounts: Mail Order – Telephone Order accounts tend to pay a higher transaction fee and are used when your credit card cannot be met physically. Mostly the payment processing merchants with the credit card of a credit card directly to a terminal on a personal computer installed to run, or through a standard Web browser to process transactions on the website of a payment.
Account Internet: Internet merchant accounts are similar to MOTO and accounts can be used for transactions on the Internet. Traders with Internet accounts use a virtual terminal or payment gateway to process payments by credit card. These high risk gateway providers are now integrated with most of the Business Web Hosting packages and are specially designed HTML forms or application of the shopping cart.
It is important that the type of merchant account and payment processor for the type of company you choose will decrease. Although there are many providers of payment services out there, it’s a good idea to closely read their conditions of service, as many of them exorbitant fees and have strict rules regarding transactions. If something seems questionable, ask questions and do some research before you agree to anything.