Merchant Accounts And Different Types Of Businesses
"Because there are other forms of payment like checks or credit cards aside from cash, it has become complicated unlike before when things are simpler because cash is the only accepted mode. Even as some businesses can thrive on accepting cash only, most businesses cannot continue their existence without accepting card payments. These plastics are the second most used form of payment today and is the assumed mode of payment used on the Internet. Thus, accepting credit card payments is crucial for online businesses.
Sad to say, people are being educated more often and in detail on cash handling than accepting credit cards. Merchant accounts are far more complicated than most business people know. The merchant services industry produces billions of dollars in revenues annually and there is a great number of players on many levels all wanting a portion of the pie. Each player contributes a layer to the procedure of accepting credit cards and complicates not only the process of accepting the cards but also the cost structure. To make matters worse, acquiring good information is hard to do. Half of the available information on merchant accounts is provided by merchant account providers.
In the world of credit card processing, businesses work in different ways and thus affect the type of merchant account they will have. It is imperative that a merchant account provider sets up for the merchant an appropriate account. This will prevent the many problems that will arise if the merchant is not properly classified. Proper merchant accounts also help the merchant save money and protect against frauds.
Below are the types of business organizations that will find merchant accounts useful:
CNP accounts or Card not Present accounts are suited for business organizations that don't have personal contact with their customers during a sale. The payments are accepted through the mail, fax, phone or electronic mail.
An Internet business is very similar to a CNP business. They only differ on how the credit card information of the customer is obtained. The information is obtained through a form by online businesses. A business isn't considered an Internet business if the company has a.com in their name, the website advertises but doesn't take payment, customers order by phone reading contents from the website, or the merchant uses a payment gateway to process transactions.
A mobile business is like the retail business except that the mobile business cannot process the sale in real time. The mobile merchant uses a manual imprinter and captures the imprint of a customer's credit card and, with a signature, processes the sale shortly after.
There are business establishments that open only for a specific time annually, these are called seasonal businesses. Examples are landscapers, fireworks sales, holiday-based, and some trade show merchants. They cannot open or close their accounts randomly but only on the selected dates during application.
by: Greg Pierce