Merchant Accounts: explained
A Merchant Account, or more specifically, an Internet Merchant Account, is a relationship between a retailing company and an Internet Merchant Bank via an online Payment Processor (AKA Payment Gateway), which allows the retailer to accept payments from customers via the Internet through the use of credit cards, eChecks and other electronic fund services. Payment transactions should always be performed using a Secure Certificate (SSL technology).
It is important to note that even if you have a merchant account with your current bank, you may need to acquire an Internet merchant account and find out which payment processing gateways your Internet Merchant Account supports. Sometimes your existing bank can upgrade your merchant account to include internet transactions and suggest a payment processor partner; other times you may need to open a separate account with the same bank or another bank. Many merchants maintain an independent Internet Merchant Accounts apart from their regular business accounts and simply transact and transfer funds between accounts when desired.
There are numerous account types that permit Internet payments and only by researching your bank's current offerings or other bank's services can you hope to find the easiest and most cost effective solution. However there are financial institutions that offer Internet Merchant services and accounts more frequently and smoothly and can offer a bundled deal that covers the monthly and/or per transaction cost of an internet payment in with the merchant account services fee.
One such institution is Wells Fargo, who have an Internet Merchant Account "getting started" area for you to review. There are many other such service providers; you need to find one that suits your business needs.
Once you have an Internet Merchant Account (IMA), you need to set up the Payment Processor. If you have opted for a bundled package that includes a payment processor gateway, they should be the ones to set up the identifying account and merchant ID numbers required for transactions to occur. If your IMA supports a number of gateways then you may wish to choose which to use, in which case you will need to sign up and find out which numbers and codes the processor needs from your IMA and which numbers your bank needs from your payment processor.
Once set up, performing online internet transactions is relatively easy and your pureCommerce software is already set up to support and perform numerous transaction types with different payment types. You may need to specifically request that your IMA supports Electronic checks, Discover cards or American Express cards depending on your relationship with these parties.
Regarding Electronic checks (ECheck)In order to accept payment from electronic checks, you will need a special kind of Internet Merchant Account called "Electronic Check Internet Merchant Account" (ECIMA) The account is seperate from any other IMA you may have.
To accept credit cards and Electronic Checks from your pureCommerce driven web site you will need to have two Merchant accounts
- Standard Internet Merchant Account
- Electronic Check Internet Merchant Account