Article published by : Amit> on Tuesday, August 21, 2012 - Viewed 745 times

Category : Credit

Importance of using Merchant Account

Merchant accounts have become a primary and mandatory option for you if you want to tap into the maximum potential of customers buying through Internet and without cash in the retail stores. Owning this account will allow Credit Card Processing for buyers either by internet in your non-physical store or credit card terminals installed in your retails store. The importance of having this account is far greater than just being a payment mode. In addition, losses are also huge if you choose to forgo this option resulting in loss of a great customer base.

What does it mean to have a Merchant account?

It is basically a bank account meant for the purpose of businesses to accept the debit card, credit card or electronically made payments from the shoppers. This account contractually binds the company (merchant in this case) to the bank or a third party (aggregator), leaving almost no scope for any kind of fraud, if shopper’s perspective is considered. These accounts can be of various kinds including online merchant accounts allowing transactions via Internet.


Given below are some of the major highlights and benefits of using Merchant account:

1. Accessibility 24/7

It allows you to remain available to shoppers following their schedule. He is free to choose from the whole list of products and services.

2. A fast transaction process

As soon as the deal takes place, you will be paid for the service rendered or the product sold by easy debit or credit card payment processing. Even if the buyer is taking a credit (by Credit Card) it will not be on you but on the bank keeping you safe.

3. Increasing your Business horizons

With the availability of offshore Merchant account you will be able to sell abroad as well by accepting payments globally, increasing your prospects.

4. Protection from fraud
By owning a merchant account, you get equipped with best protection against frauds.

5. It is cheaper than third party processers like Paypal.

Not in the initial costs, but it is cheaper in the long term. Go through the available options and choose for the best that meets specific requirements of your business model. As it is not always that cheaper is better.


1.Do a good research for the banks or financial institutions that gives you freedom of customization with the Merchant account.
2.The online payment processing should be quick and fast so that a shopper doesn’t leave you after filling his cart because the process was time consuming.
3.Look for free 24X7 customer services, warranties, additional services etc.
4.Be aware of the different kinds of fees associated with the account and look for possible hidden charges.
5.Look for maximum flexibility that can be availed.


1.High initial cost
2.A huge list of different kinds of fees is attaches with the service
3.Responsibility of the information of the shoppers
4.Probabilities of credit card frauds

Keywords: credit card payment processing

By: Amit>

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