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A merchant account is an account with a merchant bank that makes it possible for businesses to accept credit card and debit card payments online.

And although merchant accounts are offered through local banks, a merchant account is not the same as a checking or savings account.

Instead, a merchant account is like an agreement and a contract between the merchant account bank and the business owner which allows you to accept credit card payments online for small transaction fee, along with rules and regulations as well.

Types of merchant accounts:
There are basically two types of merchant accounts:
   
The “over-the-counter” (OTC) merchant account and the “money-order/telephone-order" (MOTO) merchant account.

The “over-the-counter” merchant account is used primarily for retail merchants with brick and mortar storefronts and typically has a lower discount rate and transaction fee since the customer and the credit card are physically present at the point of sale which reduces the risk of fraud.

The “money-order/telephone-order" or MOTO type merchant account is primarily used for Internet and home-based businesses where the customer and credit card are not physically present at the time of sale which increases the risk of fraud and as a result can also increase the discount rate and transaction fee as well.


How a merchant account works

After your customer enters in their credit card information on your shopping cart system, the credit card data is then sent through an authorization and verification process which then allows the total amount of the sale to be deducted from the customers’ credit card.

After the funds have been successfully deducted from the credit card, the merchant bank will then proceed to process those funds, deducting their transaction and processing fees and then depositing those funds directly into your business or personal bank account within 48 to 72 hours, and sometimes less.


Rate and fees

Many business owners believe that it’s too expensive to accept credit cards online. And this may be true with some banks who charge annual renewal fees in addition to transaction and processing fees.

However, there are numerous merchant account providers that charge a small percentage of the total sales amount when accepting credit cards online.

Those fees can range from 2.5% to 3% per transaction. And there may be other fees as well such as Internet transaction/batch fees, address verification fees, monthly service/support/statement fees, and chargeback fees.

NOTE: Rates and fees may vary with merchant account providers so be sure to shop and compare.


Applying for a merchant account

Most people believe that it’s difficult to apply and get accepted for a merchant account, especially if you’re a new business just starting off. However, applying and getting approved for a merchant account is not that difficult at all.

Furthermore, many merchant account providers boast a 98% acceptance and approval rate for new applicants even if you’ve never accepted credit cards before.

When getting approved for a merchant account, there are two departments who will make the final decision on whether or not your application gets approved: An ISO (Independent Service Organization) and the underwriter. Any many times, the ISO serves as the underwriter as well.
  
The ISO carefully evaluates the future risk and success of the new business and approves or denies the applicant based upon these factors. And if the business owner violates the terms and conditions of the agreement of the merchant account then the ISO/underwriter will close down the merchant account as well.

However, most new applicants are able to get approved without any problems within 24 hours or less. And the success of your internet business relies greatly on the ability to accept credit cards online.

Consumers want to be able to shop online using their credit cards in a safe and secure manner without having to mail in a check or money order or wait for a payment to clear before their product can be shipped.

Furthermore, the average consumer will spend more on your online store when they’re able to shop using credit cards. And they can also use their debit cards to deduct the money from their checking account without having to pay interest rates or credit card fees.

Suffice it to say that just about all internet businesses now accept credit cards online. And if you want to compete with your competitors then your business will have to do the same.
  
   
How much does a Merchant Account cost?

With our partner merchant account provider Cayan merchant services it’s free to get started.

The application fee has been waived.

The programming charge is free.

And getting set up to accept American Express and Discover Card is free just as well.

Cayan merchant services has everything you need to start accepting payments today. Leverage their top of the line payment processing services and be able to access optional tools and improved ways for you to do business. Perfect for all businesses looking for standalone payment processing solutions. Call for a free
quote today 1-844-210-7336.

No Setup Fees, No Annual Fees, Lowest overall payment processing cost. 'No Cancellation Fee' policy reflects commitment for best ongoing support.

Visit the Cayan merchant services website today for a free quote!

Call Cayan merchant services today for a free quote: 1-844-210-7336
 
   
Cayan merchant services has everything you need to start accepting payments today. Leverage their top of the line payment processing services and be able to access optional tools and improved ways for you to do business. Perfect for all businesses looking for standalone payment processing solutions.

Call for a free quote today 1-844-210-7336
   
   
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Footwear, Shoes Distributors, DropShippers
Small Appliances DropShippers, Wholesalers
Tools and Garden DropShippers, Wholesalers
Gifts Distributors, DropShippers, Wholesalers
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Top Web Building Software Programs
Top 10 Web Host Providers
Top 10 Complete eCommerce Solutions
Top Website Developers
All About Shopping Carts
All About Payment Processing
All About Merchant Accounts
Using PayPal as a Payment Processing Solution
More Merchant Account Providers
All Merchant Account Providers
Setting Your Prices
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Maintaining Your Online Store
Your Internet Marketing Master Plan
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Paying for Products with Your Customers’ Money
How to Collect Sales Tax for Internet Sales
Avoiding Credit Card Fraud
How to Ship International and Overseas
How You Get Paid Each and Every Day
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