So many merchant account types -- which should I choose?

So many merchant account types -- which should I choose?

A merchant account gives a business credit card processing capabilities. There are five main types of merchant accounts: retail merchant accounts, internet merchant accounts, wireless merchant accounts and mail order merchant accounts. A merchant account is necessary for any business operation that accepts credit cards. Accepting credit cards is vital to the continued success of any business. Credit card processing is made available through various types of merchant accounts. There are five major types of merchant accounts to choose from. The best choice for a particular company is determined by a variety of factors surrounding the business and how they operate.

Retail merchant accounts
Retail merchant accounts are the grandfather of all merchant accounts. Retail merchant accounts are best suited for companies that have stable physical retail locations, regardless of the business' size. This type of credit card processing capability is provided at an on-location terminal where the customer physically swipes his or her credit card for immediate payment. Keep in mind that if a retail location accepts payments over the phone, in the mail or via the web, they may need to consider another form of merchant account in addition to a retail merchant account.

Internet merchant accounts
Internet merchant accounts allow a company to accept payments via a website. An internet merchant account will give a business the tools it needs to perform credit card processing for their online store or services. Small home-based businesses are perfect candidates for this type of account, as are large companies with web-based payment processing or sales.

Wireless merchant accounts
If you have ever ordered pizza and the delivery driver has swiped your card and charged your account while standing on the doorstep, you have witnessed a wireless merchant account in action. Wireless merchant accounts let a business become mobile. Businesses such as wholesale companies that need credit card processing capabilities at trade shows, restaurants that deliver foods and professionals that perform on-location services all benefit from wireless merchant accounts.

Telephone merchant accounts
Everyone makes payments on certain bills over the phone. Doctor's offices, hospitals and businesses that offer in-house credit and payment plans are all prime candidates for telephone merchant accounts. This type of account gives a business credit card processing capabilities over the phone. Simply enter in the customer's credit card information, and the business is on the way to receiving the funds.

Mail order merchant account
Although mail order catalogs and services aren't as widely available as they were in the past, many businesses still sell goods through the mail. In addition, businesses such as healthcare providers that send out monthly bills and allow customers to mail in their credit card information for payment are prime candidates for a mail order merchant account. Mail order merchant accounts provide credit card processing capabilities to even the smallest home-based businesses.

Published: September 18,2023