Internet Merchant Account- What Is That?
In today’s, cashless world majority of financial transactions happen by using plastic money. To understand What is an Internet merchant account we need to understand few elements that are listed below.
Who Is An Internet Merchant And Why He Needs An Internet Merchant Account?
An internet merchant is a company or an individual that offers products or services over a web storefront or shopping website. Once the Merchant has all the products and services listed and all the marketing is in place at the point in time the need for a merchant account arises. This Internet merchant account allows the merchant to accept payments from buyers.
What Is An Issuer Bank?
An issuer bank is a bank that offers Credit Debit Card to the Buyer.
What Is Card Scheme?
It is a Payment Network linked to various well-known cards. The Banks can become the member of the same and then they can offer credit or debit cards to the cardholders.
What Is A Payment Gateway?
A payment gateway is a Secure IT infrastructure utilized in the payment processing system. It securely accepts, stores and forwards the transaction related. This information is forwarded to the acquiring bank.
What Is An Acquiring Bank?
An acquiring bank is a financial institution that offers a Merchant Account to the seller. This acquiring bank covers the maximum risk in the entire transaction process.
What Is Internet Merchant Account – In Detail?
A merchant account is a special bank account that works as a bridge between 3 parties
- The Merchant
- The Payment Service Provider
- Acquiring Bank
Step1: – The Payment request is originated from the merchant’s website, VT, Moto, Mobile App, POS or POB.
Step2: – The Request is forwarded to the Payment Gateway. This Payment Gateway has to be PCI DSS compliant for the card information security.
Step3: – The Payment gateway sends the request to the Merchant Acquiring bank.
Step4: – The Request is further sent to the Card Scheme
Step5: – The Card Scheme send the request to the Card Issuing Bank.
If there are no declines in the process then the transaction is confirmed and the buyer gets a confirmation via the merchant’s notification system.
Throughout the process, all parties have the ability to have a 2-way communication that means at any step if the transaction is restricted or declined the previous party will get the info and the same will be shared with the merchant.
How To Integrate Internet Merchant Account For Online Payment Processing
Methods For Internet Merchant Account Payment Processing
Point Of Sales With Internet Merchant Account
Internet Merchant Account with Virtual Terminal
Advantages Of Recurring Billing With Internet Merchant Account
- Less Paper work. With internet merchant account you can use re-occurring billing. This means you do not have to send notifications to chase the payment.
- Safety of Card details. The card details are not stored om your website. They are only handled by the PSP web infrastructure.
Type of Fees Involved in Internet Merchant Account
- Processing fee also known as transaction fee is a fixed percentage that you pay for each transaction.
- Monthly Fee: Some internet merchant account providers may ask for a fixed monthly fee.
- Annual fee: High Risk Merchants may be subject to an annual fee.
- Rolling Reserve: Some merchants with bad credit or high risk industries may have to accept a 10% rolling reserve deduction.
- Gateway Charges: Gateway charges are the charges charged by the companies who facilitate you to maintain the financial data processing of credit card purchases when you hire the services of a payment gateway.
How Quadrapay Helps High Risk Merchants
- Detailed Business Plan(Optional but highly recommended)
- Live website- Processing companies usually are not interested in evaluation incomplete website.
- Proper description of your goods and services on your website.
- If you sell tangible products that are sourced from a supplier then a copy of the supplier’s agreement.
- Bank Statement – Personal and Business.