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Online Merchant account types and account cost by websites good






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Online Merchant account types and account cost by
Article Posted: 08/18/2012
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Articles Written: 711
Word Count: 459
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Online Merchant account types and account cost


 
Business

MERCHANT ACCOUNT TYPES

Depending upon the functioning type and operating type merchant accounts are divided into 3 categories or types. Those are 1) Retail 2) MOTO 3) Internet The name itself indicates the functioning way of these three types of merchant accounts. Retail merchant account: In retail account the merchant and customer comes in face to face contact. The business and deal occurs in front of each other. The payment is done using a card. The card is swiped by using a machine in the merchant premises. Even though the business has done in a formal way business man and the customer will be known to each other in a better way than the other two types of merchant account. It is almost an easy to go kind, and it is considered as low risk account in the merchant account world, because of the nature of the contact between merchant and the customer. Necessary precautions should be observed to protect the interest of customer and as well of business people. It is very necessary for any kind of flourishing business. This method is also known as swiping method of merchant accounts. MOTO: This is the second kind of method in merchant accounts. It is an abbreviated form for Mail Order and Telephone Order. This kind of business takes place main through mail or telephone and the customer know such business establishments through advertisements given by the business establishments. It is a low risk account and merchant friendly account. Almost all merchants are safe in this kind of account. But there are some loopholes in this kind of merchant accounts. It is risky for a business because after delivery, the goods may not reach the customer or customer may reject the goods or the rightful owner may not be available on the spot to receive the goods delivered by the merchant. In this kind of merchant account type merchant and customer both should take care and they should follow certain procedures to avoid cheating from the other end. INTERNET: Sometimes all the transactions are done by using the internet and online everything has been done and finished. Both the parties without leaving their places will finish the deal and through internet only the payments and transfers are made. This kind of merchant account and the above merchant account MOTO, both are known as keyed accounts, because here the merchant account has taken place by using the keyboard.

MERCHANT ACCOUNT COST

Merchant account cost is decided by both the parties, merchant account types and service providers to conduct the business. The cost is per transaction made or it cost per item that has been traded. High risk merchant account is pharmaceuticals, oriental medicines, adult’s literatures, casinos etc.


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