Merchant Account - Accept Credit Card Payment

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.

Credit Card Terminal

Charges Associated with a Merchant Account.

The merchant establishments are also liable to pay "other fees" that contribute to the authorization of credit card payments. Such fees include: authorization fees, statement fees, batch fee, chargeback fee and a monthly minimum fee.

Who needs a Merchant Account?

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
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.