Online merchant accounts are an important investment for any business. They allow businesses to accept payments from their customers in their online stores. They sometimes also come with other benefits, including hardware and software solutions that add functionality to the business’s website. Financial experts agree that recent changes to customers’ expectations for online payment options will be permanent.
In preparation for these changes, it’s smart for businesses to take advantage of an online merchant account. In doing so, it is useful to know the services they include, as well as their potential for improving businesses and increasing profitability.
What is an online merchant account?
An online merchant account is a special kind of bank account that provides the ability to accept forms of online payment from customers. This typically includes both credit cards and debit cards. These merchant accounts can also be used for mail or telephone orders, face-to-face transactions, and mobile processing.
How payment processors differ from merchant accounts
In addition to providing merchant accounts, many merchant account providers also offer products and services that enable customers to purchase goods from online stores and businesses. Some also supplement this by providing the ability to accept additional forms of online payments, such as eChecks, ACH transfers, or cryptocurrency. They may also provide software or hardware that can enhance the merchant’s business, which some merchant account providers include at no cost.
Third-party credit card processing happens through a separate company that has a relationship with the online merchant accounts provider. This enables businesses to encrypt transactions and process them efficiently. Ultimately it is the payment processor that actually conducts the transaction and assumes any chargeback risk in the even the merchant cannot pay it or refuses to do so.
Online merchant account providers and payment processors are usually two different entities, although both functions can occasionally be performed by the same company.
Payment processors collect, store, and transfer the payment information directly. Visit Charge.com or call them at (888) 924-2743 to view online merchant account services and products that offer the lowest rates for businesses of any size.