Merchant Accounts

A merchant account is a special account that is set up for a business/individual to accept and process credit card/debit card/ATM/Check orders. After a customer swipes their credit card/check through a terminal, the information is passed securely to a processing bank. The processing bank makes sure there is enough available credit in the customers account, and if so, they then deduct the appropriate funds from the account. If there are not enough funds, the card/check is rejected and a message is displayed on the terminal read-out screen. Assuming the funds are available, the money is transferred to the merchant's business checking account within 2 to 3 business days.

In addition to checking for available funds, the processing bank also makes sure the card has not expired or wasn't reported as lost or stolen. If either of these are the case, the transaction is immediately halted.

Merchant Processing Requirements

Customer access to terminal
Customer access to terminal (or PIN pad) so they can enter their PIN.

Ease of processing
The faster the better, want to establish average checkout times.

Access to telephone jacks if not utilizing wireless units
Terminals will need to be placed close to telephone jacks for connection. Have your local telephone company install jacks where you'll be placing processing equipment.

Size of equipment footprint
All-in-one integrated terminal solution or separate equipment? Need to consider countertop space.

Purchasing a second phone line
Evaluate whether second phone line needed to connect terminal.

Technology Flexibility/Options
Ability to process onsite transactions as well as ecommerce/web transactions. Wireless or mobile processing is an added bonus.

Internet Merchant Processing Requirements

It is important that you conduct your due diligence before settling on one particular merchant account provider. You don't want to be obligated to pay high monthly fees, nor would you want to overpay on a terminal solution. Additionally, you don’t want to be locked into a contract with a vendor who isn’t keeping up with the latest in technology, thereby limiting your ability to take advantage of newer technologies. Price cannot be our only deciding factor, which is why it is vital for you to have a general understanding of the Merchant Processing concept.

Some factors to consider when choosing a merchant account provider (in no particular order):

• Integrity of the Provider (BBB, References, How long in business)
• Total Cost of Ownership (Ease of use, free shopping cart, merchant fees, maintenance, employee training)
• Leveragability (Same company can process onsite POS, Web Site, Wireless, Phone and Internet Software based transactions)
• Customer Service

Components of the project will include:

• Technology type (Wireless or Wireline)
• Shopping Cart requirements
• Training required to operate; Training provided by vendor
• Personnel needed to support/operate
• Timeline for implementing

Value To You

Enhance sales opportunities, streamline operations, and establish a solution that aligns with your long-term strategy.