| Merchant accounts were created to make banking | | | | grocery using your credit card, the teller would check if |
| transactions easier and more convenient. These are | | | | your account is valid, have it authorized and then |
| bank accounts that facilitate payments using debit or | | | | record the transaction as seen on your credit or debit |
| credit cards. It also serves as a contract between the | | | | card receipt. The card is then charged with an amount |
| parties involved such as the retailer, a merchant bank | | | | which will be deducted from your personal account |
| and the processor of payments. Usually, merchant | | | | after a short period of time. |
| accounts are introduced to the market by the | | | | Since it involves money, these accounts are not |
| processor or bank sponsoring the transaction. Since | | | | without risks. The merchant has to carefully review |
| credit cards are registered directly with Visan and | | | | your application to have a merchant account since it |
| MasterCard or ISO/IMP (Independent Selling | | | | entails risk. For example, when you purchase |
| Organization / Member Service Provider), they are | | | | something online, you need to put your credit or debit |
| also accompanied by different policies. A member | | | | card number and your password. Some transactions |
| bank or a bank that does business transactions with | | | | might not be recorded properly since there is no actual |
| Visa and MasterCard is authorized to issue an | | | | card being swiped on a machine. There is also the risk |
| account directly to a merchant. However, this is done | | | | of credit card frauds, a common occurrence when |
| under certain conditions such the merchant's location, | | | | doing online transactions. |
| whether or not it has a successful store or branch and | | | | In applying for a merchant account, you have to be in |
| if it is in business for more than two years. | | | | the business for more than two years. You also have |
| Merchant accounts are used by businesses to accept | | | | to take into consideration the order size and the |
| credit card payments. This has become a trend in | | | | estimated amount that your account will carry every |
| making online payments through online shopping or | | | | month. To safeguard it against fraud, you will have to |
| doing business transactions over the Internet. The use | | | | make a deposit or a percentage of your month |
| of debit and credit cards in purchasing a product or a | | | | amount. To accept orders, you have to have order |
| service has paved the way for a faster and more | | | | forms in HTML format or HyperText Markup |
| convenient business transaction. For an online retailer, | | | | Language, the web's programming language. To |
| this is can also mean a successful business. Using | | | | safeguard your customer's account information, they |
| merchant account in accepting payment transactions | | | | should be encrypted with Secure Sockets Layer |
| would require some careful considerations. When you | | | | (SSL). This will not only keep their account safe and |
| are shopping online or buying something from the | | | | secure, they will also put trust in your business. |