Basic facts about Credit Card Merchant Account

Credit card merchant accounts are indeed very popular these days. However getting a proper credit card merchant account is often confusing, as there are numerous banks, third party sales teams and merchant account providers offering such services. You need to do a thorough research about these services. The following are some of the basic facts about credit card merchant accounts.

Accepting payments through third party payment processors:

One of the easiest and most reliable ways to accept credit card processing is through a reputed third party payment processor. There are several companies such as and Paypal that allow you to accept online payments from your customers.

The credit card processing of these companies are very simple and hassle free. There is no need for your customers to go through painstaking credit checks, or even deposit large amounts. Moreover, these types of credit card merchant account service providers include an option, where you can put a short business name along with your clients’ credit card bill.

Though Paypal has no sign up fee, 2Checkout charges a one time setup fee of $49 USD. Moreover Paypal is also much cheaper. They also work differently while processing orders.

Generally 2Checkout purchase your products or services and resell it to your customers. Thus it makes a profit from them. Initially they will handle the customer concerns related to the transactions, but the product or service specific questions will usually be referred back to you.

In contrast credit card merchant accounts like Paypal will simply process the primary transaction in their name, in case you have upgraded your credit card merchant account to either a Premium or Business account.

How to invoice your customers:

Paypal is one of the most popular credit card merchant account that allows invoicing your customers. However, unless your customer opens a Paypal account, it will not allow you to send a money request to him/ her. However if you are carrying out your e-business from US and Canada, there is no need for your customers to register for a Paypal account.

In addition, most of the Paypal accounts have a send limit that restricts the amount of money you send. Though the send limit in most of the markets where Paypal functions is extended up to $1000, it is still a restriction.

On the other hand, you can conveniently opt for credit card merchant accounts like 2Checkout that directly purchase the product or service from you. Therefore, they do not have any account creation requirements imposed on your clients.

You can enjoy the invoicing function of 2Checkout, if you are able to show them that you are processing authentic business deals through their system. Moreover, this process is hassle free for all your clients.

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