Merchant Accounts FAQ's

A merchant account is simply a relationship between a credit card processing company and a business so that the business can accept credit and debit cards. Merchant accounts are used for all types of business, both online and brick and mortar, and allow businesses to safely and secure accept credit card payments. When you open a merchant account, the merchant account company will set you up with the equipment or software you need to accept credit cards. This is normally credit card equipment, like a swiper, or software for your website. Once you are set up, the merchant account company will verify each credit card payment, safely process it, and then deposit the funds into your account within 2-3 business days in most cases.

An online merchant account is a specific type of merchant account that helps websites to accept credit cards and debit cards on their website. In most cases, the online merchant account will help you to install the needed software on your website to safely and securely accept credit card payments on your website without needing to worry about security. In addition, an online merchant account will help you track all sales and will process all the payments for you, depositing the money into your account within 2-3 business days in most cases.

Signing up for a merchant account is actually very easy for most people. The more difficult rate is actually finding a reputable merchant account company that provides good rates. You can learn more about the merchant account companies we recommend here, or call 1-866-734-8450 to begin the sign up process with Merchant Warehouse, our recommended partner.

The discount rate refers to the percentage of each purchase that the merchant account company charges for processing the transaction. In most cases it can range between .39%-2.0% depending on the type and risk of the transaction. Be careful when you sign up for a merchant account because there are over 150 different discounts rates for different types of transactions. Swiped transactions in stores tend to have the lowest discount rates where as phone order and mail order transaction usually have higher discount rates.

Generally transaction fees refer to a standard charge per credit card purchase. For example, the merchant account may charge $.05 for every credit card purchase that is processed in addition to the discount rate. Always make sure to find out exactly what the transaction fee is and if it varies from transaction to transaction so you can find the best merchant account for you.

The cost of a merchant account varies greatly from company to company. When calculating the merchant account cost, make sure that you take into consideration the discount rate, transaction fees, monthly minimum fee, batch processing fees, reporting fees, and any cancellation fees. You should also consider any equipment fees that may exist. In our experience, Merchant Warehouse provides the lowest rates and also will match any competitor's price. If they can't, you get $100.

In order to get credit card equipment in your store to start accepting credit cards, you first need to open up a merchant account that will process the credit cards for you safely. Many merchant account companies will provide you with credit card equipment when you open your merchant account or you can buy equipment new or from a reseller. For more advanced credit card machines, you may have to purchase the credit card machines.

The easiest way to begin accepting credit cards on your website is to open an online merchant account. When you open an online merchant account they will help you to install the software needed to safely accept credit cards on your website. We recommend Merchant Warehouse for online merchant accounts since they offer the most competitive rates. Moreover, they also offer excellent customer support and have no contract which in our opinion is the best combination for websites just beginning to accept credit card payments.

That depends on the merchant account company you use. In our opinion it is best to sign up for a merchant account that has no contract or a month-to-month contract. However, some merchant account companies have contracts that last between 1-5 years with cancellation penalties. Since merchant account discount rates can change frequently, in our opinion it is important to not be locked into any contract or rate.

The set up fees for merchant accounts can vary greatly from company to company. It is important to look for a company that does not charge for the application or set up fees. These fees can cost over $100 in some cases with some merchant accounts. Both Merchant Warehouse and Merchant Express offer free set up and applications.

A virtual merchant can be defined in a few different ways, but essentially it is just another name for merchant account. Virtual merchants many times refer to an online business that sells products or services and accepts credit card payments using a virtual account. It also sometimes refers to any merchant account that is hosted using a virtual, or online, platform.

When you want to calculate how much a merchant account costs monthly, you have to have an idea of what your monthly credit card sales are as well as all of the costs of your merchant account. Once you know that, you will need to multiple the sales amount by the discount rate and add all of the additional fees that your merchant account company charges. Learn more here.

Batch processing is the term for when a batch, or group, of credit card purchases is processed and sent to the merchant account company. This normally happens at the end of a shift or at the end of the day so that the merchant account company can process all of the purchases and get the money deposited into your account at quickly as possible. Normally it is as simple as pushing a couple of buttons on your credit card equipment or clicking on your online merchant account options.

Checking your merchant account reports is an important step in managing your credit card purchases and merchant account. Merchant account companies differ in how often you can check reports, but we recommend finding a merchant account that has real time report processing. Real time report processing means that you can check your reports at any time and see where you are at that exact moment.

Every merchant account company has different customer service plans but we believe it is extremely important to make sure the company you choose has strong customer service. It should be 24/7 and should have both account support and technical support. This is incredibly important because broken credit card machines or credit card software means that you lose sales and money. You want a company that can help you fix your problems immediately.

Accepting debit cards is a must for any business and it is easy to accept debit cards with a merchant account. Just make sure when you sign up with the merchant account you let the agent know you would like to accept debit cards. For online businesses this won't change anything, but for brick and mortar businesses, you will need credit card equipment that processes debit card and allows the customer to enter their pin.

A mobile merchant account, also sometimes called a wireless merchant account, is a merchant account that allows you to accept credit cards and debit cards using your cell phone or a wireless credit card processor on the go. They are popular for businesses that often go out on the road to sell products or services, as well as businesses that frequent trade shows, farmer's market, flea markets, and more.

Accepting electronic checks on your website is as easy as choosing a merchant account with that option. If you want to be able to accept electronic checks just let the merchant account company you choose know to make sure they offer the service for websites. Always check on the pricing for accepting electronic checks because it can sometimes be very high.

It depends on the company that you use for your merchant account. Many companies have contracts that can last between 1-5 years. When you cancel a contract, there is almost always a penalty fee for cancelling. However, there are some merchant account companies that do not have contracts, one of which is Merchant Warehouse. Since there are no contracts, there is no cancellation fee.

You should always contact the company with whom you opened your merchant account with questions. If you don't have a merchant account company, call 1-866-734-8450 to get answers to your questions about merchant accounts.

Any business, large or small, that wants to accept credit and debit cards will benefit from opening a merchant account. This includes restaurants, retail stores, websites, hotels and lodging, small home based businesses, traveling sales people, and more. If you sell any type of product or service, you can use a merchant account.

Yes, definitely. It is always best to choose a merchant account that can manage every aspect of your business. You want to find a company that has online credit card processing and in person credit card processing, and most importantly you want a merchant account reporting system that combines all your sales so you have everything in one place.

With most merchant account companies, there is no minimum amount of purchases. With that said, many merchant account companies will charge a minimum monthly fee if you do not reach a certain amount of sales.

It depends on the company you chose. All of our recommended partners are safe and secure. Always check to make sure the merchant account has a A Better Business Bureau rating.

It depends on the merchant account you choose and the type of transaction. There are over 150 different types of transaction and usually each one has a different transaction rate. Ask for a full list of rates from your merchant account provider and determine what types of transaction you have the most. You can also call 1-866-734-8450 to learn more about transaction rates.