Credit Card Merchant Accounts enable you to accept credit cards over the Internet. Did you know over 85% of all Internet transactions are paid for using online credit card payments? Don't miss out! Let us help you complete your e-commerce payment process with our Help - Merchant Account Terminology services. Review our Merchant Account informations you will learn how to bypass the confusion of working with multiple third-party vendors. You will take care of yourself regarding all aspect of your application process to hooking up your merchant ID into your online store.

Bank and financial institutions assist in setting up Visa, Discover, American Express and MasterCard merchant accounts.Banks provide their services in exchange for processing fees. Assuming you have reasonable credit, setting up with Merchant Accountst services is simple. 

Their relationship with banks and financial institutions making their merchant account offering appealing.  Begin accepting payments online today.

Choosing a Bank Credit Card Processing & Clearinghouse
Processing credit card transactions usually occurs at a clearinghouse. When your shopping cart within your online store receives the credit card during the payment process, the Transaction Processing Clearinghouse is the organization that authorizes and validates the card (making sure the number matches the card and that sufficient funds are available).

Merchant Account Provider (Accept Credit Cards)
Merchant account and credit card service companies are plentiful on the Internet.
In Industry terms, these companies are called merchant account providers or Independent Sales Organizations.

The cost of setting up and maintaining a credit card merchant account depends on who you choose to provide your merchant account services and how many middlemen you go through.
(In our website there are usefull and detailed informations regard to the costs of  Best Merchant Accounts collected by us).

Discount Rate
A percentage that is paid to the credit card company on each transaction. If a customer makes a credit card purchase worth $10.00 and your discount rate is 2.40%, you pay $0.24 for the $10 sale. A competitive discount rate is roughly 2.40%. Keep in mind that discount rates on the web are higher than that of brick and mortar stores. Make sure the rates that are quoted to you are for internet sales.

Monthly Processing Minimum
The monthly processing minimum is the MINIMUM monthly fee you must pay to the credit card company. A competitive monthly minimum is approx $30.

Statement Fee
This charge is exactly as it sounds. The fee you pay for the bank to generate and mail you a statement outlining your transactions. Statement fees usually cost between $10.00-$15.00/month.

Transaction Fee
The amount charged per transaction. Most companies charge around $0.30. If you make 50 sales per month… the total transaction fee would equal (0.30 x 50 = $15.00).

A chargeback is when a customer disputes a charge on their statement by contacting the credit card company instead of contacting you. If a customer does not recognize the charge on their statement, or if they believe the amount was wrong, they may call their credit card company and ask them to investigate.

Real-Time Processing
This method of credit card charging authorizes and charges the customer's credit card at the time of purchase.

Offline Processing
This method of credit card charging allows you to capture your customers' credit card information for charging at a later time. If you have an existing offline merchant account, this may be a good option for you.

Secure Socket Layer (SSL)
SSL is a secure web protocol that uses 128 bit or higher encryption to keep your customer's card number and personal information secure.

A gateway processor charges your customers' credit cards via the web and sends the funds to your merchant account.
The final piece to setting up a merchant account to accept online payment is the gateway that connects you to the transaction clearinghouse.

There are three common gateways

Credit Card Card Swipe Machines
The machinery next to nearly every checkout register in the country. After the card is swiped, an authorization code displays, and is usually printed on a credit card transaction slip. The authorization comes from the clearinghouse that the store's bank contracts with, and it effectively assures valid payment to the merchant when the customer signs on the dotted line. This method  is not needed for pure-play  dot-com businesses.

Desktop Software
For e-businesses, desktop software can be used as the transaction gateway. Once you receive the credit card number via phone, mail, or email the merchant manually enters the credit card numbers and payment amounts into the computer software, and transmits the list over the Internet to the clearinghouse designated by the bank. In a few moments, the clearinghouse responds with a list of good card and bad cards to allow the merchant to proceed as necessary. This software solution works better than the card swipe machine, but may not work for large volume stores. It also requires re-keying data from each order into your computer, which can lead to user errors and can be time consuming.

Real-Time Web Gateways
There are several payment gateways to the transaction clearinghouse that can authorize and validate credit card payments while the customer is still online. These gateways provide a walkway from your website to a different modem channel to check the credit card status in real-time, a very complicated process if you were to do it on your own from step one. If you wish to use a real time gateway, which is most common with ecommerce shopping cart software, make sure it is compatible with the system you are going to use.

You can complete the terminology regard to Merchant Accounts seeing other our pages " How Merchant Accounts work, Rates and Fees, Methods to Process  Credit Cards ".


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