Merchant Services - Blog

What Is An Internet Merchant Account?

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.

Internet Merchant Account is similar to a bank account that allows businesses to receive the payments from the end users of that website, from credit and debit cards. To start an online store, we must have an Internet Merchant Account, though it might be difficult to get but here at quadrapay.com, we have a skilled team that can assist you. We at quadrapay.com are devoted to serving you with good solutions.

You will not only be provided with the best prices but also with the best possible solutions for your type of industry. The Internet Merchant Account will allow your end users to have a good experience over the e-commerce website and with that you can also increase the customer loyalty.

If you are making a shift to the startup, it is essential for you to get familiar with the different terms which are related to credit card processing. All the e-commerce websites need to have an Internet payment gateway which helps them to have real-time credit debit card transaction processing.

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

After getting an online merchant account, the service provider will send a code from their end to your team so that you could embed it into your website. For that, the code should be modified in such a way that it should be secure enough so that no hacker or another unauthorized person ever gains access to it. After integrating the code into the website, all the information of credit card processing will automatically be sent to the internet merchant account service provider.

Methods For Internet Merchant Account Payment Processing

Point Of Sales With Internet Merchant Account

Nobody wants to lose the market share by whatever means it comes from. Now you know the process for having an online merchant account but what if your sales are from offline mode also? In that case, we have another solution for you, and this is the Point of Sales.

So in this case, when we give your application to our processors they go through all your credit history and all the related things and then they will provide you with a mobile device so that when a customer hands over you his/her credit/debit card you can just swipe it on your device and make the payment process complete.

Internet Merchant Account with Virtual Terminal

At every business, security is the primary thing for all the payment process, and our processing partners provide it at a very first step. For some industries they also provide virtual terminal in case the industry wants it and for that again various factors comes into play. Which defines whether the industry is capable enough to get it. The virtual terminal is used for credit card processing and ACH transactions, and for that, you just need to have a computer which has an internet connection, which will allow you to complete those transactions securely and efficiently.

All the information can be carried forward from the end users over the phones to the person who is handling the virtual terminal, and then the person processes the information over the secure web page, and this complete process is named as MOTO(Mail Order/ Telephone Order).

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 Fees/Annual Fees/Monthly Maintenance Fees

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

We at quadrapay.com may also serve you if you’re into a category of “high risk merchant or high risk industry,” and in those specific cases we go through all the documentation part and then we send it to the processors. We have established reseller and affiliate relationship with multiple national and International credit card payment processing companies which facilitates almost all type of industries.

An online merchant account provider is generally a separate company from the payment gateway provider. While some merchant account providers have their payment gateways but typically they use 3rd party payment gateways. At the time you are applying for the merchant account at quadrapay.com, you must be carrying have these ready:-

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.
Terms and conditions, refund Policy, Privacy policy must be list on your website for the approval of an Internet Merchant Account.
Bank Statement – Personal and Business.

Bankim Chandra