Which is the right merchant account for you?
With the introduction of the merchant accounts, now it has become really easy for the merchants to expand their business globally. Merchant accounts are basically the services provided by the banks and financial institutions. They provide the service to the merchants by processing the payments received from the customers. It has provided them wings to fly high in this market. It has provided them a global platform where they sell and buy goods for the expansion of their business. Sensing the huge demand in this sector, the banks and financial institutions has developed various categories of merchant accounts. They have developed them according to the various needs and requirements of the retailers.
The needs and requirements of a retailer or a business owner determine the type of merchant account he/she must possess. It is quite usual to own multiple merchant accounts, which fulfills the different needs of the account holder. Therefore, let’s have a look at the different types of merchant account available for the retailers around the world.
Retail merchant accounts
They are the most preferred type of merchant accounts people go for. The reason behind is the lowest transaction fees, which usually attracts the customers. But it is also true that it also has the highest number of restrictive rules coupled with them. It also has a rule that around 70% of the sales have to be made through the credit card payments, and the credit card has to be physically swiped through a credit card terminal. This type of merchant account is usually associated with the businesses like grocery stores, hotels, restaurants, etc.
MOTO merchant accounts
MOTO (Mail Order Telephone Order) merchant account is usually used in the situations when a retailer cannot receive payments by swiping the credit card through the credit card terminal. In comparison to the retail merchant account, MOTO merchant account has higher transaction rates. This type of merchant account is usually possessed by those companies who generally accept payments through mails or telephone.
In this process, the merchants swipe the credit card through a credit card terminal which also contains a keypad. They enter the details into the terminal through the keypad. The terminal is usually connected to a virtual terminal or to a computer, which in turn is connected to the internet.
Internet merchant account
Internet account is quite similar to the MOTO merchant accounts in terms of cost and rules. Most of the banks offer MOTO merchant account, but some of them also offer the internet merchant account which offers a different gateway to the account holders. The gateway can be used for the processing of payments through the credit card.
Mobile or Wireless merchant account
This type of merchant account is gaining popularity these days, which offers processing of payments through the mobile. It is for those business people who are constantly on the move. It comes with low fees and higher discount rates,
Apart from them, there are also some categories to meet the desired requirements. Some of them are Hotel/Lodging, Petroleum/Pay at the Pump, and High Volume Processing.
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