Credit Card Merchant Account is a Convenient Way to Accept Credit Card Payments

Taking credit card payments has evolved into nearly a major requirement for online businesses. But the anticipation of dragging funds from a plastic card in your customer’s wallet or a series of ones and zeroes in their phone is terrifying. While receiving credit card payments is necessary for an online business. Usually, businesses cannot initiate receiving these payments. Firstly, they must get a credit card merchant account that functions as a mediator between a customer’s bank account and your business’s bank account.

What Is a Credit Card Merchant Account?

A credit card merchant account refers to a business bank account that facilitates businesses to process online payments via debit and credit cards. The credit card merchant account functions as the mediator between the swiping of the card and sending the money into a business account. It permits online businesses to accept the funds for transactions instantly rather than waiting for the customer to pay their credit card bills.

What is the work process of a credit card merchant account?

Normally, an online business is required to get a credit card merchant account to receive credit card payments from customers. A credit card merchant account is a certain type of bank account that stores your money after a credit card transaction is processed and while the credit card network processes the payment. After that, the funds are deposited into your business bank account.

With the standard structure, you had to function with a merchant account provider or directly with a bank to get a merchant account and bargain a long-term contract to pay monthly fees. Then you’d get the essential hardware to process payments offline or set up the software you required to process online payments.

This is all complicated and additionally expensive as it looks. So most new startups neglect this step and prefer an all-in-one payment service provider.

How To Acquire the best credit card processing service?

For getting the best credit card processing for small businesses, the business must apply and be authorized for a credit card processing service with a merchant acquiring bank. During the authorization process, merchant banks regard various criteria such as the time duration the business has been specified, history of bankruptcy, past credit card issues, and any prior merchant accounts. A credit card processing company may also analyze if your business is liable to credit card fraud. If a business regards as high risk, the merchant may assess higher transaction charges to offset the risk.

Pricing Structure

The pricing structure is the primary factor you need to look out for when purchasing something from a merchant. Usually, merchants will have one of three types. Flat-rate prices, interchange rates, or tiered prices.

l  Flat-rate pricing. This is the easiest and generally used pricing structure by mobile credit card processors. For each credit/debit card transaction, you have assessed an already set ratio of that transaction. If your business has low sales volume or small-ticket products. This may be the most profitable pricing model for you.

l  Interchange-plus pricing. This structure contains two parts. An interchange and a plus. The interchange is a processing ratio set by credit card processing companies. The second rate is the markup set by the credit card payment processor itself as the profit. For instance, a typical interchange-plus pricing structure looks like 2.2% plus $0.22 per payment. This structure is regarded as a fair pricing structure because of its translucency. But it will make your statements typical to read.

l  Tiered pricing. This structure categorizes transactions into three categories: qualified, mid-qualified, and non-qualified transactions. Not shocking, qualified transactions get the best prices while non-qualified payments get the least profitable prices. This structure is the most common pricing structure available. While it will make your monthly statements simple to understand. The transaction fee will probably be higher than you were anticipating as the provider will promote the lowest prices. And most transactions will not be successful.

How can you decrease credit card processing fees?

While free credit card processing for small businesses may not exist for online businesses in 2022. However, there are many ways you can lower credit card processing fees. Here are just a few:

l  Offer cash discounts

l  Negotiate new prices

l  Eradicate extra services

l  Fight fraud

Conclusion

Even though there is no method to receive online credit card payments online for free. But finding an affordable payment solution is possible. Reduce prices and facilitate the complete process by selecting an all-in-one payment service that will provide your website with competitive payment processing.

WebPays is one of the most inexpensive and easy-to-use payment solutions that deliver everything you require to receive online payments. It is consisting of a free payment processing account and a free website. Additionally, you can add extra features as you expand and prefer its marketing strategies to help you in growing your business. Visit WebPays to get credit card payment services.