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![*]()
Online merchant account
![*]() An online merchant account
is similar to an open-end line of credit. You send your
credit card transactions for processing, and the service
provider credits your business checking account. Those funds
are available for you to use as you wish. The transaction
is posted to your customer's credit card statement, and
they have the right to dispute any charges posted.
If the customer disputes a transaction and is not content
with the service or product offered, a chargeback may be
issued which means the amount paid by customer would be
debited against your business' account. In order to assure
you have the funds to cover any potential chargebacks, we
require a credit check.
Whether you host your own site or house it on the server
of a web hosting company, it is of utmost important to ensure
you implement security measures in place to protect sensitive
information. The majority of web sites use SSL (secure sockets
layer). It is an encryption program that encrypts credit
card information during the transaction process. You should
also ensure you have redundancy systems in place and clear
service level agreements with your provider, which provide
a complete description of the services it is obliged to
deliver.
A number of merchant account providers offer integrated
systems (turnkey solutions) that include each of these components,
as do hosting companies and E-commerce solution providers,
which bundle merchant accounts and other services into their
packages. If the merchant account provider does not offer
integrated services, it is important to ask what kind of
software it requires. Your hardware and software requirements
will depend on your processing method (batch or real-time)
and business needs. If you decide to implement real-time
processing, you will require payment gateway software to
authorize and process the credit card number in real-time.
Your existing technology solutions may include the provision
of an Internet merchant account. As a result, before you
go to a bank or ISO, review the package that you have with
your hosting company or E-commerce provider. If the package
includes an Internet merchant account, evaluate what it
comprises and ensure it is acceptable for your business.
For example, when you decide to sell online, selecting a
merchant account provider is only one consideration. You
also need a storefront solution to enable customers to send
orders, a payment system to process transactions, and a
payment gateway to securely process payments as they travel
from a customer's site to your site.
To sum up, the more aware and knowledgeable you are on merchant
accounting, the secured you will feel in your transactions.
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