If you own a business, you need the ability to accept “plastic” for payment, and the only way to do that is to open up a merchant services account.
But what is a merchant services account?
The concept of credit cards is clear; you use a credit card to make a purchase, knowing your account will be charged that amount plus fees and interest. It speeds up the transaction time, and allows you to move quickly from place to place, keeping accurate records of everything you spend. In order to keep consumers happy, businesses must offer to take credit cards. Unfortunately, you cannot just open your business and accept cards on your own. That’s where a merchant services account comes in to play.
A merchant account offers businesses a cost-effective way of accepting credit cards from their customers and clients. It’s a deal between you and a credit card processor to accept credit card payments, and convert them to deposits into your bank account in the future.
You can choose between two types of accounts: a card present account, or a mail order/telephone order (MOTO) and Internet merchant account.
With a card present account, the customer must give you the card and you will run it through a machine. With a MOTO and Internet merchant account, no physical card is presented.
To apply for a merchant services account, you have to fill out an application, and have it approved by the processor. Banks are not always your best choice, as they may require other bank accounts on file, and have more stringent guidelines in place. Instead, look for a merchant services provider that has experience in the industry, and has a long track record working with various types of businesses.
After you are approved through your chosen processor, you have to have the equipment or software to process the credit card transactions. You can do this by purchasing a point of sale terminal (for physical “swiping” of cards) or processing software. With today’s technology, you have a lot of options, including mobile processing. Once you have your terminal or software installed, you will be in business. You are officially able to accept credit cards for payment.