So, you’re setting up your online business, and you keep hearing the same buzz words repeated over and over. Payment gateway, merchant account, payment processor, the list goes on.
And every time you think you’ve got a grasp on the concepts you read another article that says something different altogether. It’s starting to make algebra look easy!
Safe2Pay wants to make it simple. This guide will teach you everything you need to know about merchant accounts so you can stay in control every step of the way.
What Is a Merchant Account?
If you run a business and accept debit and credit card payments from customers, you’re going to need a merchant account.
It allows you to accept payments by debit or credit cards for your business. You might know it as your business bank account.
If you are going to be operating an e-commerce or (online store), you will need an internet merchant account (even if you already have a business bank account).
What Is an Internet Merchant Account?
An internet merchant account is a merchant account specifically designed to hold the funds of your online transactions from your e-commerce store. An account is necessary as it allows you to accept recurring credit card payments.
You should able to get internet merchant accounts from your bank. However, it may be easier to purchase your account through Safe2pay, who offers everything you need to get your business up and accepting online payments.
Why Do I Need a Merchant Account?
Some new business owners might get swept up in what at first seems to be the easier option of a third-party account. A third party account allows users to accept online payments without a merchant account (as these processors provide their own). However, they soon find that although they appear convenient at first, they come with significant disadvantages such as,
- Potentially higher fees.
- Linkage to a different sites home-page.
- Loss of credibility- not all third-party merchants have an excellent reputation. They may have been cited for fraud or mainly used for adult sites, this, in turn, will reflect negatively on your own business.
Safe2Pay believes that having a merchant account and internet merchant account ultimately provides a more user-friendly experience, allowing your business to grow and remain secure. With advantages such as:
- Greater ease of transaction.
- Heightened security- with banks protected by the FDIC and merchant accounts typically come with fraud protection.
- Greater autonomy- since the transaction stays between the customer and your merchant account, there’s no intermediary handling of money or processing of customer’s details.
- Receive payments faster.
- Legitimacy- your business name remains on the transaction statement only further reassuring your clients through every stage.
How Do I Setup a Merchant Account?
There are two main ways to obtain an Internet Merchant Account:
- Through your bank directly
- As part of a complete online payments solution via an independent payment gateway provider which can issue you with an Internet Merchant Account on behalf of a preferred banking partner.
Safe2pay allows both processes; you can use your existing Internet Merchant Account or enable us to set you up with one that ensures the secure and efficient running of your online business.
What Should You Bring Along When applying for any Merchant Account?
- Detailed business plan
- Live website
- Description of your product/services
- Supplier’s’ details
- Delivery process
- Online terms and conditions
- Expected revenue, transaction levels, order value, and number of credit card transactions
- Secure server details
- Business accounts
- Current bank details
- Trading history (if applicable)
- Details of business owners and partners
Or you can call 1800 723 327 to talk to one of our friendly customer service team who can help get you started.
What are different Merchant Account Fees?
Merchant accounts can have a variety of fees attached. If you already have a merchant account, you’ll probably notice that the costs of an internet merchant account are typically higher, this is because of the assumed higher risks of online payment.
- Application Fees
- Setup Fees
- Monthly Fees
- Discount Rate
- Per-Transaction Fees
- Cross-border Fees
- Rental fees for a credit card terminal
Additional charges can increase the total fee per credit card transaction to over 3%, so you’ll want to shop around.
How Does an internet Merchant Account Work with a Payment Gateway?
It seems so easy to a customer, but the behind-the-scenes process is anything but. It doesn’t have to be tricky for you, here are a couple of easy steps:
- Integrate the payment gateway into a website with a virtual shopping cart. The shopping cart allows your customers to pick and choose the various items they want to, and at checkout, the shopping cart totals the items, adds tax and shipping and collects the customer’s shipping and billing information.
- The payment gateway captures the credit card transaction, encrypts the transaction information, routes it to the credit card processor and then returns either an approval or decline notice.
Safe2Pay integrates all these concerns seamlessly. They are one of the most secure payment gateways in Australia, offer API and site testing, competitive prices and have a dedicated support team located right here in Australia available for contact whenever needed.
Being able to accept credit cards as a form of payment can help grow your business. It’s an obvious necessity for online sellers and is proven to increase sales. Get on top of all the important terminology with this comprehensive guide!