Merchant Accounts Direct

What is merchant account processing?

Merchant account processing is an automated process in which you, a business owner, are able to accept credit cards and debit cards as a method of payment. It's automated because once your paying customer swipes his or her card (or you key it in, in the event that the sale is over the phone or over the internet), selects the appropriate card type, enters in any requested information and signs their name, the rest is taken care of with no input or prompting from you. The amount is deducted from the card, and minus a transaction fee, is deposited to your business checking account.

How long does merchant account processing take?

Generally, provided there are no technical or communication errors, from start to finish a typical credit card or debit card transaction takes a matter of seconds. Of course, the time it takes for the transaction to be fully deposited into the business' business checking account or other account can take just a few days, or several weeks or a month, depending on the deposit process and times as set by the merchant account processor.

Who does merchant account processing?

Merchant account processing is processed by a merchant account provider. A merchant account provider can be a bank, a credit union, or a financial institution or company that exclusively handles merchant accounts and the processing of them.

Do I qualify for merchant account processing?

Most businesses, large and small, retail or internet, will qualify for merchant account processing. The major stipulation is that the business be based in the United States. After that, there are other guidelines and restrictions set up so that businesses are matched with appropriate merchant accounts. Most businesses, so long as they have the proper documentation, will find the process of being matched up to the right merchant account to be an easier one. Other types of businesses, including those of a high risk nature (adult, casino and travel related businesses are all examples of high risk businesses) and those who are owned and operated by individuals who have poor credit, may find that qualifying for merchant account processing is a possibility for them, but they may have to provide additional documentation, or adhere to additional guidelines, or even pay higher fees.

How can I save money on merchant account processing?

As with anything else, you can save money by shopping around. If you are a small business owner, ask other small business owners about the merchant account processing services they use. Perhaps they know of a company that can work with you and offer you inexpensive merchant account processing. Or, if they want your business, they may be willing to make a deal with you. Another thing to keep in mind is that the more legwork you do for a merchant account processor, the more money you'll save. Gather up all of the documentation and paperwork and information you think a merchant account processor might need, so that they don't have to spend your money and their resources to do it. Finally, when you do have your merchant account processing in place, cut costs by grouping purchases wherever possible (remember, you are charged a fee per transaction!), and swiping entries, rather than keying them.