If you operate a business or are planning to start one in the near future than you probably already know what a credit card processing agent program is. A credit card processing agent program can efficiently handle all credit transaction that your business receives. Knowing what type of merchant account your business will be classified as can greatly help you find the best credit card processing agent for your business.
Know What Kind Of Merchant Your Business Is To Find A Better Matching Credit Processing Agent:
If you operate a retail business then it is highly probable that you would fall under the traditional account merchant. Businesses such as department stores, grocery stores or small supply store are considered traditional merchant account, where transactions are done via point of sale or face to face. These merchants carry a low risk of having transaction returned or declined.
Mail or Telephone Order (MOTO)- MOTO merchant accounts are those who rely on mail or phone orders to operate their business. These merchants do not require traditional equipment when taking card order since they are done over the phone. MOTO accounts are however, considered higher risk because there is no face to face interaction during the payment process so there is a higher probability of funds needing to be returned.
Ecommerce or Internet Based Accounts-
Merchant accounts that have online stores fall into the ecommerce and internet based accounts. This is quickly becoming the largest merchant account group because more and more customers are buying and selling conveniently online. Merchants that operate in the ecommerce accounts carry a mid level risk but have a number of other factors that need to be considered when it comes to credit card processing in these areas.
Wireless and Mobile Accounts-
Most small businesses, independent contractors and freelancers tend to fall into this merchant account group. Most merchants in this category tend to sale on the spot and therefore need to have a system in place that allows for on demand credit transaction. Merchants that fall into this category can be charged additional fees for their credit card processing because of various factors such as the merchant’s personal credit and the volume of sales and service being provided.
It is not uncommon for many merchants to fall into more than one merchant account category because they offer their goods and services through a variety of channels. Your business would fall under this account if you for example you operated a storefront that dealt with point of sale transaction as well as an ecommerce account for the same store that relied on internet transactions. When you fall under the multiple merchant account there are additional fees you may be charged for credit card processing which relates to your risk. There are also a number of discounts and reduced rate you can qualify for.
High Risk Accounts–
High risk merchant account can be one of the hardest categories for merchants when trying to find a Credit Card Processing Agent. Business that fall into this category can range from travel agencies, casinos, marketing companies to online pharmacy companies. There are also higher fees that high risk merchant accounts are charged if you do successfully find a company willing to work with your high risk business.
Identifying your business into one of these merchant accounts can make finding a credit card processing agent program a lot more easy. When you know exactly what kind of transactions your business will be relying on you can better find the right agent to assist you in your businesses credit card processing needs.
Shaw Merchant Group