Wednesday, 23 September 2009

If You Own A Business Then A Credit Card Merchant Account Is A Must

By Andy Zain

In order to be successful in today's businesses, you must keep up with the times. More and more consumers prefer using different forms of payment than the conventional cash method. So, if you're asking yourself why have a credit card merchant account, the answer is clear -- more sales because it offers your consumers convenience and peace of mind.

In the United States, 50% plus of all purchases and transactions are completed by some form of electronic transaction. The business that does not offer his consumer this easy form of purchase is usually left out in the cold. More often than not, the consumer will go to a business that does provide electronic transactions and that is why it is extremely necessary for the modern business owner to know how to satisfy his customers.

Because credit cards allow the consumer to buy now and pay later, they have more purchasing power. And, the merchant never loses a sale and receives payment, almost to the day for that transaction.

The process is fast and effortless. With the help of a point-of-sale transaction terminal, the credit card is passed through and electronically submits the information to the provider. An authorization is necessary and is transmitted back to the merchant, guaranteeing that he will be paid because the funds are available. This guarantee comes in the form of a printed receipt right from the point-of-sale terminal. The customer must sign the receipt, he is given a copy, and the merchant keeps one copy for himself as proof.

Each day, the merchant will request to close the batch, in other words, to give a summary of all the day's electronic transactions. Once the batch is authorized and closed, the funds will be transferred directly into the business merchants account. This transfer of funds is usually available within 48 hours. Of course, there are fees that are associated with credit cards, which are deducted prior to transferring the funds into the business bank account.

Cyber businesses absolutely need some form of electronic payment. In these instances, specific software is necessary to complete any and all transactions. "Shopping Cart" or "Payment Gateway" are two such software that are essential to Internet businesses.

Charges are different between providers. There are different, associated with every credit card and service provider. There are also terminal fees. Generally, it would be advisable to approach your banker before shopping around as you already have an association with that bank and they may be able to give you a better price.

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