Generally, you can obtain an Internet Merchant Account from banks, independent online payment providers and third party processors. These solutions tend to evaluate applications similarly, but you will find that banks usually focus more on your personal credit history (yes, it does matter) and the size of your business.  Online payment providers and third party processors, however, will be more interested in your turnover figures and your anticipated volume of transactions.

Therefore you should request quotes from the companies that specialise in meeting the needs of your business. For example: if you know that your credit history is less than perfect it is not advisable to get a quote from one of the major high streets banks as it is unlikely that your application will be approved. However, you should focus on online payment providers with a high acceptance rate that either provide flexible terms according to credit history or that do not evaluate credit history at all.

If you have been trading for a while and have a high turnover or high volume of transactions most companies will be happy to work with you. As rates are very competitive across the sector, ensure you get quotes from all companies offering better deals.  For example, PayPoint.net is offering to speak to their acquiring banks on your behalf to get you a better deal on your Internet Merchant Account.

Another potential issue is if you are running a specialty site that is considered high risk. By targeting the most appropriate payment processor, you can increase your chances of getting approved. For company owners that have a decent credit history, there are many more options available, especially if their credit card processing needs are small.

Ultimately, the secret to getting an Internet Merchant Account that suits your business requirements is to target providers that specialise in your business circumstances. This will increase your chances of having your application approved and save you time and money.

So what is a merchant account, please explain, often people connect a merchant account with a regular bank account which isn’t obvious but simply a confusion in the terms.

A Merchant account is opened by an Acquiring bank, which is authorized by the card association to process payments by credit card for Online Merchants. In many countries you will need to contact another company (Payment Service Provider, ISO or MSP) which on behalf of the Acquiring bank will open the Merchant Account for you. Often you need to sign a Credit Card acceptance contract both with the Acquiring Bank and the Payment Service Provider, to become a Merchant Account.

When you open a Merchant Account you will also need to know which credit cards you will and need to accept on your web site. The major credit cards are Visa and MasterCard, then comes Amex, Diners, JCB and the rest. Many countries have also country specific credit and debit cards for which you need a separated merchant account or merchant agreement. A Merchant Account can be opened by any business which sells products and services and which to accept credit cards, this is the case for both online and Offline business. However, not all business industries can become a Merchant Account or Merchant Agreement, some business types are simply not accepted by the card association.

Read more at : Accept Credit Card Payments