Merchant Services Journal Entry

Merchant Services : Reviews and Expectations

The primary costs to a merchant of merchant accounts are discount rate and transactions fees. The merchant account provider has a lot of latitude in the pricing structure.

Three tier pricing of Merchant Services  is one of the most common pricing schemes. Using 3 tiers pricing, the merchant account provider groups the transactions into 3 groups (tiers) and assigns a rate to each tier. The three tiers are qualified, mid-qualified and non-qualified rates.

A qualified rate is the lowest tier. It is what a merchant is charged when processing a consumer credit card in a way that has been defined as standard by the merchant account provider. The qualified rates is what is usually quoted by merchant account salespeople. A mid-qualified rate is what the merchant is charged if processing a transaction outside of standard parameters. A mid-qualified rate may apply to rewards or corporate cards, which can comprise up to 40% of the cards used for purchases. The Merchant Services, of course, has no control over what card a consumer uses.

accept credit card payments philippines

Going with the credit card trend is just about another step towards shooting up on product sales. Products can range from consumer items to consumer services. Once quality, price, location, marketing, good reviews, and popularity are all in check, ease of purchase is also a consideration. The business might just be starting up or has been at it for quite some time, but there should still be room for innovation. Whether it's the usual shop across the street, even a flea market, or a web-based company, the option of paying using debit or credit cards would surely attract the picky and impulsive buyers who live on credit these days. Therefore, choosing the best merchant account really does make a difference.

5. Check up on fees
Compare the fees and standard services when considering several of these specific account providers. This will determine which provider has the best offer for you. Also, make sure to find out if there are any special fees like statement fees for a monthly statement being mailed to you. This will avoid any future complaints about getting billed.

Remember, a reliable account services provider can promote success to your business. Choose wisely.

amazon india merchant account

Merchant Services : Reviews and What to look for in a Merchant Account ?

accept credit card payments on laptop

What is a Merchant Account? A retail establishment is able to accept credit cards, debit cards, electronic gift and loyalty cards through the medium of a "merchant account" established with a credit card processing firm. Merchant accounts or credit card processing services are provided by merchant banks or Merchant Service Providers (MSP).

A merchant or retail establishment benefits from subscribing to credit card processing services by tapping into the huge potential held by sales generated through card transactions. Retail establishments with card processing services are a preferred choice among shoppers. Providing such payment options invite the shopper to spend a little extra than planned.

Credit Card Processing

The technology used to make acceptable credit card transactions involves a credit card terminal. This is a single piece of electronic equipment with a telephone like keypad connected to a power supply and a telephone connection. A credit card can either be swiped on this machine or details of the card can be manually keyed -in. The telephone connection is required to verify the validity of the card and authorize the transaction. Advancement in technology allows the same verification process to be completed through the internet or cellular networks.

Considerations in Subscribing to a Merchant Account

The financial gains and expenditures must be taken into account to devise a successful method to accept card transactions profitably or at a low cost. The key aspects that must be considered in deciding a favorable merchant account must include:

  • The cost of the credit card terminal
  • Charges or rates specified by the Merchant Service Provider
  • Scope of Transactions
  • Application and Setup costs
  • Acceptability of major credit cards and
  • Security of transactions
"Scope of transactions" implies the ability of the service and the terminal to accept transactions involving a wide variety of payment methods. Payment methods include: credit cards, debit cards, gift cards, loyalty cards, electronic cheques, private label cards or store cards and other smart card technologies.

Merchant Services Declined Letter

Merchant Services : Best Reviews of 2018

Merchant account is a contract between a business and a bank or a financial institution. This contract ensures that the bank accepts payments for the products or services on behalf of the business. These Merchant Services acquiring banks ensures that a merchant or company can accept payment from international customers for the products or services they deliver. Thus merchant accounts form a vital part of any E-commerce business.

citibank merchant account india

There are two types of merchant accounts. First is the normal account, where the Merchant Services can directly access the card and ensure that it is a legitimate customer, thereby the risk involved is minimal. The second type of Merchant Services involves the accounts where it is not possible to visually testify the customer. These types of accounts include adult entertainment merchants, online tobacco merchants, replica merchants, online gambling merchants, pre-paid calling merchants, VOIP merchants, multilevel marketing merchants, or any transaction that takes place with the customer physically not present. Thereby, the possibility of fraud activity is much greater with this type of business which results in classifying these types of accounts as “high risk” ones. Naturally, these high risk merchant accounts present the risk of the dreaded charge backs for the banks in question. It has been proved by various researches that these high risk processing transactions are more susceptible to fraudulent transactions.

anz online merchant account

Merchant Services : Things to Note and Avoid

anz online merchant account

So you've finally decided to explore the revenue channel offered by the Internet. Accepting credit cards via the Internet has paved the way for merchants to increase their income. With more consumers shopping online, it's a profitable decision for businesses to provide credit card payment processing on their websites. The question would then be, where do you begin?

Here are the 3 major components of credit card processing:

Payment Gateway

A payment gateway manages the secure transfer of credit card funds of your customers from your website to your merchant account. This is done with a software interface provided by the payment gateway company that collects vital credit card data from the customer, and also informs the customer in real time if their credit card was approved or not. Payment gateway companies normally charge a transaction fee and a discount rate for this kind of service. Fees will vary from one processor to another, as well as features.

The three "ty's" of payment gateways:
  • scalability (can they handle varying transaction volumes)

  • reliability (do their servers provide 99.9% uptime)
  • security (fraud prevention tools, Address Verification Service, 128-bit Secure Sockets Layer (SSL) technology, PCI compliance)
  • Website

    Without a functional website, you won't be able to sell your products and services on the Internet. Merchant account providers sometimes offer site templates to choose from, and payment gateways offer shopping carts that are seamlessly incorporated on your site. The key words here are: easily integrated. If you can't integrate, you can't sell.

    In general, these three are the main factors when accepting credit card payments over the Internet. Having these three won't guarantee a successful online business, but are imperative if you plan on engaging in ecommerce. Search the web for the best solution you feel can help your business succeed. Merchants have long tapped the revenue potential of the ecommerce market, its about time you do.

    amazon merchant account login

    TheGrandFoundation.com Specializes in Reviewing Merchant Accounts

    Merchant Services Journal Entry