Sunday, November 29, 2015

What is Merchant Account? (part 2 of 2)

Conde stated that merchant account application  normally gets processed within four hours.  When the application process lasts for a week or two, then their might be a problem with the service that is given by the provider.  It would be best then to change to another provider.  

It would be best to start the process of setting up a merchant account three weeks before  the day the business owner would like to use the service.  With this time frame, the business owner and staff will have time to address unexpected delays, account testing and gateway testing.

Merchant service providers then require a contract to be signed by the business when establishing a merchant account.  A contract is important to have the business owner’s and the merchant service provider’s  responsibilities drawn or written in black and white.

Aside from the responsibilities of both parties, it is also stated in the contract the specified length of time or term of the contract.  If the business owner failed to honor the contract in a period of time, the business owner may face penalties or cancellation fees.

There are also various and numerous fees associated with a merchant account.  Fees vary depending on the merchant service provider.  But merchant accounts would have tow main costs: discount rates and transaction or authorization fee.  Discount rate is based or determined by the type of card use and how the card is accepted and processed.  The transaction or authorization fee is charged for each electronic authorization request and transaction made.

To attract and maintain customer satisfaction and therefore increase sales, getting or having a merchant account and accepting credit card payments is becoming more and more important.  Merchant account can be both for the business’ and customers’ benefits.

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