Understanding the different types of merchant accounts for your company
For those who really want to be successful in business, a non-optional tool is a credit card processor account. Understanding the different types of merchant accounts is essential to choosing the type that best suits your business needs. You must have this type of account to manage your customers’ credit and debit cards.
Not all credit card processing options are the same. The different forms of these accounts offer the best options for different types of businesses. Below is a breakdown of the most common account types and how they differ from each other.
For a brick and mortar business, the best option is a traditional merchant account. This type uses an in-store terminal where the card is swiped by the retailer or optionally by the consumer. This type of processing does not usually have high volume discounts and the monthly fees are very high. The processor may even require a rental fee for the equipment.
A phone or mail order account is perfect for those who don’t interact directly with their customers. This is a great type for those who run call centers or who need to work with clients from multiple companies. These versions are software-based and connect to commercial order processing systems. Fees are usually lower and there may be a high volume discount.
For companies that make their sales mainly through the Internet, it is best to use an e-commerce account. This system integrates directly into the clients website through the use of pre-formatted scripts. The customer processes their won payment and the transaction is made through a secure connection.
A mobile processing account, also called a wireless processing account, is a great option for service professionals who do most of their work in the field and don’t have accounting staff in the office. This is ideal for those who are landscapers, single lawyers, contractors and more. These systems use a battery-powered mobile broadband-enabled device to process card swipes and print a receipt for the customer.
Understanding the different types of merchant accounts is the first step in being able to accept a wider variety of payment options for your consumers. These accounts can process credit cards, debit cards, brand name gift cards, and other forms of electronic payment options. Being able to accept electronic payments is essential to doing business in the modern economy.