Does one merchant account work for all types of credit cards?

Does one merchant account work for all types of credit cards?

A business wants its customers to be able to buy goods and services, no matter which credit card they have. But how does a business owner know which merchant account provider to use?

For business owners, accepting credit cards is a must. Whether in your bricks-and-mortar store or online, credit card processing means more customers buying more from you. But getting your business set up for credit card processing can be daunting. Do you need an account with each credit card company whose card you accept? Or can all your credit card processing go through a single merchant account?

In reality, a business must have a merchant account with each and every credit card company it wishes to do business with. In the past, this meant applying for a business account with each one. This also led to higher fees for some cards than others. Since Visa and MasterCard were, and still are, the most popular credit cards, most businesses would sign up for their networks and processing, which allowed those companies to charge higher network access fees.

Thankfully, those situations are no longer prevalent. With most merchant services providers, you can handle all credit cards through a single merchant account. Your merchant provider may, however, charge you separate fees for applying for a Discover or American Express merchant account, but there are those that do not.

Once you've set up your merchant account, you'll be able to accept all major credit cards. Keep in mind that Discover and American Express may have higher discount fees (the percentage of a sale that goes to the credit card for accepting their card as payment), or that some cards may have lower transaction fees. But from your customer's point of view, they're happy because no matter what card they have, they'll be able to use it.

Of course for some businesses, a merchant account may not be the best option. In some cases, obtaining a merchant account directly from the acquiring bank may be most cost effective, depending upon the purchasing habits the customer base of a particular business may have. Businesses that are affected seasonally may want to deal with card networks individually to best streamline their purchasing options. Doing so may have the effect of higher upfront costs, but depending upon how much volume your business does, it may result in lower fees in the long run.

Published: June 11,2023