FAQ
Merchant Account FAQ: What All Business Owners Should Know
Before applying for a merchant account, there are some things that all business owners should know. Here are some frequently asked questions about merchant account, and their answers.
Q: I have an offline business; do I need a merchant account service?
A: Yes. Merchant account services are very useful to both online and offline businesses. With an offline business, a merchant account and credit card reader equipment allows merchants to accept an even wider variety of payment methods, such as credit cards, debit card, checks, and even gift cards.
Q: Is it cheaper to use a third party payment system, such as PayPal, than a merchant account?
A: No. Third party payment systems not only charge you, but also you customer, to use them. Merchant accounts may have monthly and transaction fees, but they are much lower than third party account fees.
Q: What is an acquiring bank, and what will they do for my business?
A: An Acquiring bank issues your merchant ID number, accepts or declines your payments from customers, and then deposits the money into your bank.
Q: Can I apply more than one merchant account?
A: Yes, you can. It is always a good idea to put in applications with some different merchant account providers. Most of merchant account providers support free online application and take less than 3 minutes to complete.
Q: I have a merchant account for my offline business and I want to accept payments via the internet for my products as well. How do I do that?
A: First, you must ascertain that your bank or provider accepts internet payments. If they do, you can simply install software on your computer to accept the payments and have the money deposited into your account from them. If your bank or provider does not, you will have to acquire a PSP, or payment service provider. Many different websites online provide PSP services.
Q: What kind of equipment do I need for a merchant account?
A: In order to process credit and debit transactions, you must have a credit card reader and a terminal with a pin pad. Depending on the type of program you are using, you will also need computer software, and an internet connection to transmit the information.
Q: Where can I acquire the equipment that I need to have a merchant account in my store?
A: Most merchant account banks will allow for either purchase or rental of terminals, pin pads, and card readers. You can also buy or rent check readers that will process check transactions. If you cannot get the equipment from your bank or provider, try looking at websites for retailers that will sell or rent new, used, or refurbished equipment. Many sites offer these items for sale for very low prices, or even FREE if you use their services for your transaction processing needs.
Merchant accounts have many useful purposes for business owners of all types. Having a merchant account is an investment that can increase your income, so make sure to own a merchant account today.
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