Merchant Credit Card Accounts

Merchant credit card accounts: an independent guide.

Merchant Account Providers

Institutions that provide merchant credit card accounts are known as merchant account providers (MAPs). Providers falls into three categories, each with their strengths and shortcomings.

Independent Sales Organizations (ISOs)

Hundreds of these exist, many very reputable, some not so. Generally they work on a commission basis for the acquiring banks, and therefore levy higher fees and transaction charges. The usual requirements to obtain a merchant account are:

• professional-looking website.

• proper business or trading name.

• returns policy clearly stated on the website.

• US checking account.

• US postal address for checking account.

• not to be in active bankruptcy.

• no conviction for credit card (or other) fraud.

• No record of having failed in merchant account processing responsibilities.

• business records for 2 years or more.

• tax returns.

• proof of partnership or business incorporation.

• excellent credit record.

• trade references.

Our e-book outlines what businesses outside the USA will probably also need to obtain a merchant credit card account.

Banks

Strictly speaking, banks that supply merchant credit cards are called acquiring banks. The mainstreet bank holding you business account may be one of them, but acquiring banks are usually separate entities. Banks are cheaper and more reliable. But they are also more selective, and can charge steep fees for charge-backs, or withdraw the account altogether. In addition to the requirements above, you may also need to satisfy them on matters listed on our e-book.

Solutions Provided by Hosting Companies

Hosting charges are often very reasonable, and the package will take the hassle out of integrating shopping cart, payment gateway and merchant credit card account. But choices are restricted, and merchant account rates may not be the best going. At least know the alternatives before taking this route.

Consult our e-book for working listings on merchant credit card accounts.

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