Understanding An Online Credit Card Merchant Account

An online credit card merchant account is a special type of merchant account that enables you to accept customers’ credit and debit card payments directly online.

There are other ways of processing credit and debit card payments for online sales besides online credit card merchant accounts, including online payment-processing services, and online shopping, which can also enable you to receive payment from customers. Investigage any recurring charges, like monthly fees and transaction charges.

Several banks and processors offer online credit card merchant accounts. These are referred to as merchant acquirers or acquiring banks. Even if you already have a online credit card merchant account for face-to-face transactions, you will still need another online credit card merchant account specifically to accept online payments directly from customers’ credit or debit cards. Shoppers will visit your online store to order your goods or services and make payments, and the funds will usually be in your bank account after three or four working days.

Online card payments are called ‘card-not-present’ transactions, because you can’t physically check the card or the cardholder. If a purchase turns out to be fraudulent, the money will be reclaimed from your online credit card merchant account, known throughout the industry as a chargeback. Even if a card-not-present transaction is authorized by the cardholder’s bank, this won’t guarantee payment.

To help guard against fraud – when a cardholder claims they didn’t authorize a payment, check to see if your online payment card processor can offer the card scheme’s authentication service; Visa calls it “Verified,” while MasterCard calls it “SecureCode.”

Acquiring banks will charge for business-related online credit card merchant account services. There may be an initial sign-up fee, and day-to-day charges may be a fixed fee in the case of debit card transactions or a percentage of each transaction for credit cards. Additionally, if you are using a online credit card merchant account provider, they will charge you for service.

If you have any additional questions regarding an online credit card merchant account, or if you’re already set up with one but would like to improve your bottom line, then give Vision Payment Solutions a call today at the number above, and speak with a friendly representative who can help you to better understand the concept of an online credit card merchant account.