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The most common questions asked about Credits Cards.
Internet Merchant Accounts
There are three basic types of merchant accounts; internet merchant account is just one of them. This type of merchant account is specially designed for people who have a business on the internet and they want to accept credit card payments. In case of this transaction the client does not have to be there, neither the credit card, the client will give all the necessary data (bank account, credit card number etc) and the payment will be performed in no time. Let us now see how a business owner can open an internet merchant account.

The first and most important thing is to have an online business (with a web page) which works well. The next step is to look for a bank or other financial institution, which has a good offer for internet merchant accounts. This will be the hardest part, because many institutions have great offers, but each business owner has to decide for himself. After you have found the best deal for yourself, you have to prepare yourself for the following. Your web site will be slightly changed because it has to be integrated into the banks system. This way, clients will be able to buy your products only by a few mouse clicks. They will have to enter the required information and the payment will be done.

A very important thing in this kind of transactions is safety. Since nor the card owner nor the card is not present, these transactions could be a fraud. To avoid any problems, the information introduced by the card owner is transmitted to the bank in an encrypted form, so no third party can get access to the client’s personal data. It is important to make sure of the safety of the transactions because you will lose clients if you cannot provide safety. For this, you should check out the offers of several banks, and make sure that you take into account the safety part when you sign the contract.

Now let us see what the costs of an internet merchant account are. In most of the cases, you will have to pay a sign-up or registration fee at the bank where you open the internet merchant account. This fee covers the costs of processing your application. There is also an ongoing monthly fee, once again to process your monthly transactions. However, there is another fee for this, it is called fixed transaction fee. This is a small amount of money, which is taken from every transaction. The good thing with this fixed fee is that the bank does not care about the amount of the money; they will take the same small amount from every transaction. Before signing the contract with a bank, you should pay attention to the termination fee. Most of the banks apply a termination fee if the client ends the contract before due time. The common time limit is usually one year, but some banks require three-year commitment. It seems like there are many fees for an internet merchant account, but if you look carefully before you sign the contract, you will be able to find banks, which do not ask for an ongoing monthly fee, or even for the registration fee. It is very important to check the offer of several institutions, because the differences might be significant!

Overall, an internet merchant account can be very good, if it is opened at the right bank, but can take away a lot of money if you did not choose the best offer. The best thing to do is to plan ahead, this way you will be able to save yourself some money!