What is a Merchant Account – 3 Important Aspects

In answering what is a merchant account we will need PCI Compliance, card rates, terminal types, data security and connectivity. All of these will affect card processing charges that a merchant will have with his company/card provider. There are many card processing companies. These include Barclays, AIB, PaymentSense, BOI, Elavon, RMS, World Pay, EVO, Transax , Global. The’ new kids on the block’ include Square, Sumup, Izettle.

A bank’s view of what is a merchant account is that they consider them to be lines of credit. They provide merchants with finance as an advance of the actual money being collected. This means that a merchant will require to provide a personal credit check. Additionally, they need to sign a personal guarantee and supply financial data to get approved with some providers.

Merchant Account Documents

  1. Most providers will need several documents in order to set up a merchant account. These include a copy of the business license, incorporation papers. Banks will need other financial documents for the underwriting process. A bank will restrict a business to a  maximum euro amount allowed in a single transaction and for a single day. Business owners can request increases to their transaction limits on a case-by-case basis.

Fee charges are usually for transaction costs on the different kinds of cards. A merchant may get, debit, credit, corporate, or business cards. Nonqualifying cards and international cards. For more information have a look at the link from Credit Card Processing.

What is a merchant account in relation to taking card by phone

2) Taking payment by phone does have certian risk associated with it as chip in pin issues are being tested. Has the card been stolen. It might be more difficult to determine as the person making the purchase can not be easily identified. With that risk there is the possibility of charge back or refunds. With Merchant Services Munster a customer can simply call with their debit card details to pay you. That is what makes it so easy. We can organize you with a very secure virtual terminal so you can input their payment information on your computer, tablet or mobile.

What is a Merchant Account

Costs to look out for

3) Other costs will include Authorisation fees for each transaction, PCI management fees, SEPA fees, chargeback fees, and refund fees. These fees are standard for the industry and each provider will charge these. There are other paid extras that you might opt-in for including additional compliance support fees against getting penalties. Firstly this may be because a business takes deposits when it indicated on the application that it did not. Secondly, the business indicated that it did not take payments over the phone when in fact it does. Maybe Vaping or CBD are issues of regulation that are seen as “grey”

All merchants will automatically incur PCI fees for having a terminal. Furthermore penalties will occur when PCI is incomplete.

There are  4  levels of compliance depending on the merchant’s business. Is it online, or store type, and how cards information can be taken? Doing a  quick  Google or go to Cimcor for more information.

Let us  quote  for on a payment solution

If you can’t come to us, we’ll go to you.

It is important when taking on a different card processor to check the rates they are giving. Then check the costs that may be incurred through the life of the contract.   Contract life  can vary from 1-3  years or in some cases there may not be any contract. In cases of “no contract scenario” fees are substantially higher per transaction. Additionally, there is a limit on the transaction value and transaction volume.

Disputes

Knowing what is a merchant account can help in understanding why issues and arguments may occur. Often, disputes arise because of fees that the business owner did not expect. I  suggest  having a  look at the following site  from Philip Parker

who  has a  depth of  knowledge  about this  card processing industry  where he  describes in layman terms  many of the  issues and  grievances that merchants  come across and  how they may be  disputed and dealt with

Disputes arise because of fees that the business owner did not expect. I  suggest  having a  look at Credit Payment Options where Philip Parker is incredibly insightful here.

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