A Study to know
According to studies, business accepting credit card payment is likely to generate more revenue as compared to others. The main purpose of you being in the industry is to earn profit and credit card is a great mode of payment. So, it is better to get a reliable credit card processing before starting off.
There are many third-party service providers with payment solutions for credit card processing like PayPal, but it comes with shortcomings. But special measures must be taken to provide a secure environment to conduct transactions. Else customers will either drift away or will not come back for another sale, and this will increase abandonment rate and funds paid by check or direct deposit will take days to get transferred. Payment solutions like PayPal are good if merchant needs to handle low-volume sales. But if you are looking for growth, the merchant has to look for alternatives.
What do Business Owners need?
If you want to accept payments through credit card, the first thing that is must is Merchant Account. To carry out online transactions and validate credit card acceptance, a merchant account is mandatory. A merchant account is like any other bank account with a slight difference; it enables merchant/business to accept payment through various means like credit and debit cards. If the merchant has an online merchant account, so this will eliminate the need for credit card processing machine or terminals to accept payments.
Parties involved in merchant account set up process are:
- The Retailer
- Payment Processor
- Merchant Bank
Three things that every merchant should be aware of when accepting credit card with an online merchant account are discussed below in detail:
A payment gateway is a merchant service provided by e-commerce provider responsible for carrying out transactions or direct payment processing for e-business or retailers. E-commerce transactions (online transactions) are authorized by this e-commerce service (payment gateway). E-commerce service provider can be:
- Bank
- Specialized financial service provider.
A payment gateway transfers the information between a payment portal and acquiring the bank, where payment portal can be any of the following:
Website
Mobile phone
IVR machine (Interactive Voice Response)
You can more information about go to the site – www.merchantstronghold.com
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