Merchant accounts, have definitely come as a boon for businessmen operating in both physical and online environment. As consumers become more tech savvy and prefer to use their credit cards for making purchases, marketers too have to gear themselves adequately to provide their customers with the easiest payment options. A merchant account basically helps you accept credit card payment from your customers. If you are an online marketer, then you have no option but to offer electronic payments to your customers. At present, online merchant accounts have become a prerequisite for all web merchants irrespective of their size, nationality or geographical location. And these accounts really help in processing payments faster and without any complication. Merchant accounts which also goes by the name credit card processing enables business concerns to accept credit cards, debit cards, gift cards and all other types of electronic payments.

The biggest advantage of online merchant accounts is that its enables you to cut back on paper work, phone calls and labor cost for data entry. And they also provide a merchant with the additional option of accepting multi currency payments. This gives them the liberty to deal with overseas players and grow their business internationally.

Now you can add to your profits by saving hundreds perhaps thousands of precious dollars that you would otherwise have paid as service cost to your merchant service provider. Just log on to Advanced Merchant Services (www.merchant-accounts.com) and discover the advantages of associating with best Merchant Service provider in the United States Today. Advanced Merchant Services, has been leading the merchant service industry for almost a decade and is backed by the biggest processing banks in America. So whether, you need to process a sum of thousand dollars or a million your funds are absolutely secure with AMS. By signing up for a merchant account with Advanced Merchant Services you will be not be required to sign expensive contracts and bind yourself to AMS. It’s a perfect testament to the confidence that AMS has in the quality of its services.

Advanced Merchant Services, has not only offers you the best merchant account deal but the cheapest one as well. By using the special Price Bust option, a one of a kind service offered only by AMS you can browse through the rates of all our competitors. If you ever come across a cheaper rate on a service similar to the one provided by us, just let us know and we will immediately beat it by 5%. So visit us at www.merchant-accounts.com and find out about the numerous other advantages offered by AMS.

What is a merchant account number exactly? I’m trying to enter a new payee in my online billing with my local bank. Is the merchant account number my credit card number?

Setting up an offshore merchant account not only involves paperwork but also certain fees as well. It would be ideal if there is such a set up that is virtually free, which some merchant account providers do offer. But for offshore merchant accounts, there will always be fees involved.

There are a great deal of hesitation on merchants’ minds to set up offshore, one of the reasons behind the doubts is the notion that there are ”hidden” fees in the contracts for offshore merchant accounts. What happens in this scenario is that you’ll be introduced to a list of rates that you’ll sign up for because you have found them to be reasonable. But once the bill comes in, you’ll see a number of additional fees in small amounts but when added all together have actually eaten a considerable percentage of the amount you need to pay for the month. This can be really frustrating, isn’t it?

So, to assist you in this setback, provided are standard fees that merchant account providers standardly offer in setting up an offshore merchant account:

Application Fee
Setup Fee
Programming Fee
Annual Fee
Monthly Maintenance Fee
Overlimit Fee
Gateway Setup
Transaction Fee
Retail Swipe Software fees
Check-by-phone/fax PC software fee
Web Shopping Cart fee
Discount Rate fee
Address Verification (AVS) Fee
Statement Fee

How you are charged

Application fees are rarely charged nowadays. This is so because of the growing competition among merchant account providers. Zero application fees are the one of the marketing strategies to attract clients. But, just to give you a head start, industry rate for application fees ranges from $75 – $125.

Setup fees are also a thing of the past. Most providers don’t charge this anymore also as a part of the package to keep clients coming in. Industry rate is from $50 – $150.

Programming fees are applied when you want to install a software or terminal. Most providers don’t charge this anymore as programming fees are considered to be part of the set up process. Industry rate is $50 – $95.

Annual fees serves as a membership fee in certain ways. By the book, purpose is for the maintenance of the account. But it’s now also being taken out of the charges as part of attracting potential clients and keep the current ones in the circle. Industry rate is from maximum of $125.

Monthly maintenance fees can be regarded as the other option for annual fee. This is a choice of the merchant account holder if they want to pay the whole dues every year or divide the amount by 12. but in this day and age, monthly maintenance fees are also being taken out to promote client loyalty. Industry rate is up to $10.

Overlimit fees are charged when the account exceeds its limit. The industry rate varies because the overlimit amounts are grouped with the corresponding penalties. But this fee is also not charged anymore as part of efforts to boost client patronage.

Payment gateway setup fee if for the the installation of the payment gateway that is critical to your offshore merchant account. Payment gateway receives the credit card information of the your customers. This is also being taken out of the bill as it is regarded as part of the setup process. Industry rate is $99 – $299

Transaction fees are the fees charged by the processor for every credit card transaction. This is charged even if the transaction was approved or declined. 20 – 30 cents is the charged for every transaction made either by swiping, keying, over the internet or mail-order-telephone-order (MOTO).

Retail swipe software is a credt card processing software solution. This serves as an wireless terminal if you have a PC or a laptop with an internet connection. You can print out receipt real-time from top-of-the-line retail swipe softwares available in the market. For better client patronage, most merchant account providers are also charging zero for this service. Industry rate is $175 – $395.

Check-by-phone/fax PC software fee are charged when payments using a check are made over the phone, or send by fax or electronic check payments. This is still done, but rarely. For better efficiency and security, online credit card transactions are preferred. Plus, currently, there is no charge for this service as well. Just so you know, industry rate is $149 per month.

A web shopping cart fee is for the use and maintenance of your online shopping cart. Of course, when you have an offshore merchant account, you can also enjoy the luxury of selling your products and services online, and with a shopping cart, you have global market. But this fee is also being charged free as well, for better client loyalty.

The discount rate fee is the percentage charged for each transaction that the processing company (merchant account provider) charges to manage the transactions for you, either swiped, over the internet and MOTO.

The Address Verification System is a technology that double-checks the validity of the address that your customers enter for product shipping. What this system does is verify and compare the address keyed in with the address registered in the customer’s credit card issuer. Industry rate is from $5 to $10.

The statement fee is the charge for the production and mailing of your monthly statements. Your monthly bills as an offshore merchant account holder includes all the deposits in the account, total of volume sales, and other charges for the month. Now, this fee is also free of charge for improving customer service. But industry rate is $10- $15 per monthly statement.

What to look forward to

Most of the fees are now taken out to attract prospective offshore merchant clients and for to keep the current ones happy and satisfied. Some even have risk-free trial periods or offer no fees at all at the initial setup, but charge little for the crucial services which is understandable considering that every business, no matter what nature it is, needs financial resources to stay afloat. Taking out some fees is part and parcel of staying in the competitive arena. Just always know your options as an offshore merchant account holder, consult if you can’ fully comprehend, and weigh all the factors. Lastly, there will always be fees, just know which ones are really worth paying for.

Is your business considered high risk? And can you still get a merchant account?

In credit card processing, there are many different reasons why a business may be considered high risk.

First, it may be the actual business industry that has been tagged “high risk”, such as travel, multi-level marketing (MLM), e-commerce, aggregators or collection agencies.
Second, the reason may simply be the business volume that places a business in the high risk category.
And third, it may be a reflection of the business or the business owner’s credit history.

The question still arises: Can High Risk Merchants Obtain a Merchant Account?

The answer is YES. But you have to know where to go for the expert advice and guidance needed so you and your business are safe from excessive expenses often associated with high risk merchant accounts.

Working with an expert in high risk merchant accounts is critical to the success of obtaining the best merchant account solution for your business.

5 Points to Consider When Selecting the Best Merchant Account for Your High Risk Business:
Your application needs to be handled by a high risk professional expert
Your high risk merchant account processor should have experience with merchants in your business industry
The high risk merchant account processor needs to have access to numerous credit sources – including more liberal banks and offshore options
If your business does have to be taken offshore, your high risk experts need to work on getting the lowest rate available
All rates should be disclosed prior to contract with the high risk credit card processing company

3 Insider Tips To Ensure Approval for a High Risk Business Merchant Account:
Do you have a poor credit rating? Be honest about disclosing any past financial challenges. Acknowledging previous liens, bankruptcies, judgments, etc. will only improve your credibility and alleviate one more barrier.
Be open to offshore options as sometimes they can offer your business the best merchant account solution.
Shop around for a credit card processor that has expert knowledge in high risk merchant account approval – and don’t be afraid to ask questions. The more you educate yourself in the process, the more you will recognize a good high risk merchant account processor giving you intelligent, experienced answers to your questions.

Operating a high-risk business does not exclude you from being able to process credit cards. Like any business, you want to provide your customers with as many non-cash payment options as possible. It is statistically proven that accepting credit cards help generate revenues and stimulate impulse purchases.

Owning a high risk business doesn’t mean you won’t be able to open a merchant account. It does mean, however, that you may have to do a little more in setting one up that is right for your business. Do your “due diligence”, shop around and ask questions to find a credit card processing company that specializes in high risk and offshore merchant accounts and will offer their expertise to businesses who fall into the high risk category.

I want to open up a website to sell stuff, but I’m not sure if I should use a Merchant account or a Paypal account? What’s the difference?

I am starting my own online business and need to accept credit cards. I have looked at the services that paypal web payments standard have and like them. However i need to know if i have to have a merchant account or can i just use my own/business’s account ?

A merchant account is a special account with a bank that enables acceptance of credit cards, debit cards, gift cards and such other cards for businesses. It is generally used for accepting customer credit card and electronic payments through an ecommerce web site. This kind of a process is also known as credit card processing or merchant card processing.

High volume merchant accounts process unlimited sales volume. It helps in increasing operating capacity to process exponential numbers of customers and credit transactions. Such accounts are beneficial for companies that need an internet merchant account for their ecommerce business, especially if they face risk management issues and high volume sales. Businesses that process high volume transactions each month require a merchant account provider who will provide them with a high volume merchant account that is able to process unlimited volume sales. Absence of such an account can limit and restrict a business.

All High Volume Merchant Accounts are multicurrency accounts. It allows you to present and charge clients in different currencies and also settle your accounts in the currencies of your choice.

Generally, high volume merchant accounts are considered as high risk businesses on account of their susceptibility to chargebacks and fraud. Hence, such accounts processing involves a heavy volume of transactions that requires a system that is able to take care of the requirements for security, scalability, speed, fraud minimization, customer support and uninterrupted service.

The advantage of a high volume merchant account involves improving the performance of an online business and expanding his company’s potential. A virtual terminal is one of the most important feature of high volume merchant accounts as they help in reforming the documentations and operations involved to a great extent. A good high volume merchant account results into higher sales volumes, increased profits and enhanced savings.

Payment processing online allows your customers the convenience of being able to shop from the comfort of their own home. Setting up your online store however, can be quite an involved task.

In order to accept credit card payments, you will need a merchant account. Merchant Accounts are bank accounts that are designed specifically to accept payments from credit cards. You can obtain merchant accounts from either a bank or a third party provider.

Going to your bank for a merchant account has the advantage of strengthening your business relationship with them. Unfortunately, banks charge higher fees than third party merchant account providers – making them the clear choice for most businesses. If your business is considered to be in a high risk industry (such as pharmacy, adult or MLM) banks will almost never provide you with a merchant account. As such, a third party provider is often the preferred choice for most online businesses.

The Advantages of a Third Party Merchant Account Provider

Integrated Payment Processing – Most third party merchant account providers also offer full payment processing and payment gateway features, meaning no integration headaches.

Lower rates – Due to relationships with multiple banks, along with higher competition, third party providers have much lower rates than banks.

High Risk Services – Some third party providers are able to accommodate high risk merchants due to being able to spread the risk among a number of banks. Note that high risk merchants will be subject to higher rates in order to offset the risk for the provider.

A merchant account is a line of credit issued by a bank that agrees to take payments for goods and services on behalf of the business.   The business then receives payment for the transactions less any refunds and fees.  There are several types of fees that you will need to be aware of before you decide to have a merchant account.  Some of these fees include those set by the merchant account provider, interchange fees, authorization fees, statement fees, minimum monthly fees, batching fees, customer service fees, annual fees, early termination fees, and chargeback fees.

Merchant account provider fees are generally a small percentage that the merchant account provider charges over and above the interchange fees for allowing the account.  The interchange fees are charges determined by the card provider (such as Visa or MasterCard).  The fees are determined according to a set schedule of rates.  The basic pricing plan is a three tiered plan that charges fees based on the method used to “run the card”.  For example, if your business swipes the card for purchases and everything goes through as it should, you will be charged the base rate for that transaction.  If the card needs to manually entered, you will be charged by a higher rate.  If the transaction is completed without the required documentation or the batch is not settled in a timely manner, an even higher rate can be charged.

The authorization fee for a merchant account is the fee that is charged for every card ran.  These fees generally run between $.10 and $.35 and can be charged whether the card is accepted or declined.  These fees are itemized in the monthly statement.  The statement also contains a statement fee which is a flat fee (usually $5 to $10).

Merchant accounts usually have a minimum monthly fee.  This is a fee that is guaranteed for the account to cover the costs of maintaining the account.  For example, if the contract is for a minimum monthly fee of $10, but the total of the processing fees is only $5.00 then the account provider can charge the merchant $5.00.

Every night the merchant should “settle” their “batch” which just means that the batch of credit card transactions for the day is transmitted to the bank for payment.  Some merchant account providers charge a fee for the settlements and some providers only charge a fee for accounts that are settled “late” (after 48 hours).

Customer service fees, annual fees, and early termination fees are self explanatory.  The customer service fees are for access to customer service, the annual fee is a fee charged annually for the maintenance of the account, and the early termination fee is the fee that is charged for breaking the contract.

The last fee charged for merchant accounts is for charge backs.  A chargeback is a credit card charge that was disputed by a customer.  The bank that is holding the merchant account charges a fee of $25 – $50 plus the cost of the charge for any charge backs that occur. Be sure to check your contract closely for fees when you open a merchant account.

It’s true that having an offshore merchant account will expose your business to risks of high volume sales, chargeback refunds, financial fraud and bank processor scams. But such an account is greatly needed if you want to extend your business online and sell items in there. Actually, an offshore merchant account is like a license to sell on the internet.  And after all, business strategies that don’t have risk in them don’t exist.

Simply put, you need an offshore merchant account because it’s only through it that you can process credit card transactions.  But if you want a more versatile tool, you can go for an offshore credit card processing. By having one, merchants like you will be able to accept various types of credit cards as well as accept credit card payments in multiple currencies. Offshore credit card processing is the only offshore transaction that offers zero taxation and protection against currency fluctuations. Merchants will not only get exceptional tax reduction benefits but also the capacity to accept multiple currencies. The other benefits in getting an offshore merchant account include  zero taxation and protection against currency fluctuations. Merchants like you will not only get exceptional tax reduction benefits but also the capacity to “confidently” accept multiple currencies.

To get an offshore merchant account, you have two options. One is to go to the local banks. Natwest, HSBC and Barclays, for example, all offer ePDQ services. You can also transact with companies that solely provide online merchant accounts to businesses globally.