What is a merchant account?
An online bank account that holds your money until it goes to your personal account is known as the merchant account. It usually a “holding tank” that holds your money for 2 to 3 weeks of time until it goes into your real account. When the sale of product or service completed successfully, then the money customer pay for your product or service transferred into your merchant account where it remains for some weeks and then automatically transferred into your real account. A merchant account is a bank account that accepts your company’s online payment and holds the payment. We are devoted to assisting high-risk company owners to get the credit card processing services they need. We have helped countless of online and retail company owners get Instant Approval High Risk Merchant Accounts. Our retailer advisers are able to help you begin accepting credit cards in as few as twenty-four hours. We have on-line merchant applications with immediate approvals.
Another term you have to understand is Payment processor – also called an acquirer- is a financial institution that provides the background payment to the merchant who owns an online business. In most of the cases, a bank plays a role of the payment processor or acquirer. For any type of transaction, payment processor is responsible to provide the authorization.
Now understood what is a Payment gateway, all the card details entered by a customer on your website takes by the gateway and then gateway transfers them to the processor to get the money released to the merchant account. The work of the payment gateway is to connect your website to the payment processor or acquirer. By that, the customer’s money gets into a merchant account.
Benefits of having a merchant account:
Online payment and credit and debit card payment are gaining more popularity. A merchant account enables the holder to accept payment in multiple ways and can help your business to expand internationally and also grabbing the opportunities. Now you are in the modern world so, be with the modern age and accept the modern technologies. It allows you to accept the new form of payments instead of accepting cash payment and any bad checks. And this, in turn, assures your customers that you are thinking and doing any efforts for their need and capabilities.
- Accept Credit Cards– Most important benefit of having a merchant account is the ability to accept credit cards. Today’s customer preference is doing payments through credit and debit cards. Businesses today found that adding credit and debit cards into the payment method can help them to grow new customers and retaining old customers.
- Increase Sales-This is to be found nowadays that customers spend more if there is an option to use credit cards over cash is given. In one survey, sponsored by Intuit, 83% of small businesses that accept credit cards saw an increase in sales. That type of sale directly impacts the overall growth of the business.
- Good Money Management– By the online mode of transaction, you will be able to organize and allow for good money management. Better cash flow and no need to count cash and go to the bank to deposit money into the account.
- Bad checks –Receiving a check from a payment account which does not have cash and the account holder pays a check in your favor, those type of check is known as the bounced check. A merchant account can help you to avoid the hassle and costs associated with bounced checks. Now no need to go to the bank to claim a check and wait for your payment to be received. By a merchant account you just sit back and the payment processor and payment gateway can credit your money to your account on time.
- Customer Convenience-A customer can make a purchase in different ways with the help of a merchant account which leads them happiness for simple and easy purchases. Whether it is a credit or debit card, online payment, your customer will enjoy their experience with your business because it is easy, flexible and time-saving.
The Process of Online Payment Using Payment Gateway
Online payment is a four-step process in which the customer enters their card detail into your website and then your website connect to the payment gateway and then to the payment processor and after that the amount by the customer’s account credited to your merchant account and after some time the amount will be credited into your real account.
Steps 1- Customer pays to your website (any business).
Step 2-Payment Gateway takes the card details entered by the customer for further processes.
Step 3-Payment gateway takes the permission from the customers’ credit card company for payment through their account.
Step 4-The amount paid by customer credited into your internet merchant account and after some time the amount credited into your internet merchant account will be credited into your real bank account.
In the starting of any business, every businessman thinks to gain more profit in less investment but believe us after some time of your online business you just think twice to work by using a merchant account because it is easy and convenient to use and also help in increasing sales. This is why having a merchant account is good for online business to expand their business all over the world and also giving happiness and safer way to their customer for purchasing any services or product.
To know more just fill out our short form and we’ll get back to you and help you save time, give a brief comparison with several multiple merchant account providers, save money i.e., find the best pricing with respect to your particular situation, even if you’ve been declined payment processing before.IPAYTOTAL is here not only to provide you a merchant account but also to assist you and help you anytime (24/7). Whether you are planning to start a new business or need a help to expand an existing business, we can help you. Our highly experienced and well-educated team, with more than a decade of experience in the industry, will always ready to help in giving you payment solutions to start your new business with safe and secure policies and also to expand you an existing business.