Business Merchant Accounts - What Type is For You?

When researching a merchant account provider, it is essential that you find the business merchant accounts type that matches your business needs.  There are separate types of merchant accounts that specialize in different types of businesses, and if you have a simple store front operation, your needs will be much different than an exclusive internet operation.  Have clear expectations for your business needs, then search within the following  types of business merchant accounts to find the one that is right for you.

Retail merchant accounts are the least expensive, with lower transaction fees.  This is due in part to the stringent requirements associated with them.  This type of account is best for a store front operation,  since one of the requirements is that the majority of transactions will require that a credit card be present at the time of authorization.  This lowers risk, since the card is run through a credit card machine and the information is transmitted via a phone or internet connection.  This also requires the card holder’s signature, and thus lowers transaction fees for the merchant handling the card.

MOTO accounts, or mail order/telephone order accounts, are more expensive.  Used by mail order companies that do the brunt of business through mail order, the MOTO business was designed to assist companies that need to process credit cards by entering information directly into the computer via a keypad.  These carry a higher risk, since there is no card present, and no signature for records.  Some companies offer a virtual terminal that will allow the merchant to enter the transaction directly onto the merchant account provider’s site.

Online merchant providers have been designed for business that have grown to include an online presence.  This option will give the merchant a secure gateway for customers to pay online after filling their shopping cart with their wares.  This is done by the customer, so since these types of transactions have a high risk of fraudulent purchases, the cost to the merchant may be greater.  Depending on the type of business, the rates may be tiered.  High risk business such as adult products will get more expensive rates than the standard businesses.

Wireless sales are growing in popularity.  Used primarily by restaurants and other businesses, the credit card is passed through a wireless terminal, and the information is passed on to the company without the card leaving the customer’s hand.  This is growing in popularity as the incidences of fraud continue to increase.

It should be simple to determine the types of business merchant accounts you may need.  Utilize your business’s growth potential to find the best rates on your merchant account provider’s services.  Finding a reputable provider will give you the opportunity to grow your business in the most effective manner.