Who Is A merchant In Credit Card processing?

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Who is a merchant in Credit Card processing

Who Is A Merchant In Credit Card Processing?

What Is Merchant, Acquirer, API and Virtual Terminal?

A merchant is a business which is applying for a Credit Card processing account. The Merchant requests the payment service provider or merchant account acquirer for a Credit, Debit or ACH processing account. Merchant signs an agreement with the service provider. This agreement is called merchant account agreement. The merchant can accept transactions in two different ways. The first way is to accept transactions over the phone by utilizing the virtual Terminal or Moto. The second way is to accept payments over the website or over the email. merchants can easily send pay now link to the customers for order placement. We hope that the above-stated description clearly helps you to understand that “Who is a Merchant in Credit Card processing“.

Who Is An Acquirer In Credit Card Processing?

The acquirer is a financial institution that takes the complete risk of on-boarding a merchant for Credit Card, Debit Card or ACH processing. This acquirer underwrites the merchant after a deep analysis of the merchant profile and the KYC documents.  The Acquirer reserve the right to terminate the merchant account at any point in time in case if the merchant violates any term mentioned in the merchant account agreement. Acquirers can be direct acquires and they can be service providers as well. These service providers are popularly known as payment service providers.

What Is API? – Definition And Full Form Of API.

The Full Form of API is the Application Program Interface. API is a set of rules and protocols designed by a software vendor so that this software connects properly with additional programs and plugins. API connectivity plays a critical role in the payment processing industry. All payment gateways and merchant account providers utilize API connectivity. Once the merchant account is approved the API is integrated into the merchant’s website.

What Is A Virtual Terminal?

A virtual terminal also known as Moto is a payment processing platform provided by payment service providers or merchant account acquirers. With the help of the virtual terminal, merchants can easily accept credit card information or electronic cheque information over the phone and then submit the same on the virtual terminal. It is not easy to get a virtual terminal these days because of the risk. Merchants utilizing electronic check as an alternative mode of payment processing to get the virtual terminal to process orders over the phone and from the inbound call center. Virtual Terminals attract more chargebacks.


Bankim Chandra

Bankim Chandra

Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.

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