Merchant Account Credit Card Processing
Merchant Account Credit Card Processing

There are a number of ways you can choose to offer credit card processing to your customers. One of the most common, however, is via a merchant account. Merchant account credit card processing allows you to accept credit and debit card payments, as well as take advantage of a number of other additional services and solutions.


What is Merchant Account Credit Card Processing?

A merchant account is a specialized type of account issued to a business, company, or merchant via a bank or financial institution. Through a merchant account, you can allow your customers to purchase products and services from your business using only a credit card or debit card. Merchant accounts usually offer a number of different types of card processing solutions, include ones for in-store, online, and mobile use.


Typically, with a merchant account, a credit card processing fee is determined by the type of card the customer uses or is charged on a per-transaction rate.


How a Merchant Account Can Grow Your Business

Offering merchant account credit card processing can help grow your business in a number of ways. First, it makes purchasing more convenient for your customers. Instead of having to count out dollar bills and coins or write out a lengthy personal check, customers can simply swipe a credit or debit card, and be on their way. It’s quicker, it’s easier, and it puts your customer in much more of a buying mood.


If you also offer online credit card processing through your merchant account, you enable your customers to purchase from you without even leaving the comfort of their own home. This gives them the freedom to browse at their leisure, without the pressure from sales representatives or pushy store employees. Plus, they can even make purchases when your brick-and-mortar location is closed – anytime, day or night.


Offering merchant account credit card processing also makes impulse buys easier, which can be a great boon to your bottom line. With cash or check, customers have ample time to rethink their purchase decision, as they count out money or write out a check. With credit cards, however, transactions are processed so quickly, there’s little time for customers to change their mind. They simply swipe their card and, before they’ve even had a second thought about it, the transaction is completed and processed.


In addition to impulse buys, credit card processing also makes big ticket buys more viable for your customers. While most are hesitant to make large purchases with cash or check, a credit card enables them to make large purchases and pay them off later. These big purchases can greatly improve your profit margin.


Determining a Merchant Account’s Credit Card Processing Fee

Finding out the total costs you’ll incur with a merchant account isn’t just about asking for their rates. You also have to take into consideration a number of other factors, including any additional fees you’ll be charged, equipment leasing costs and more. Additionally, merchants are notorious for hiking up rates after customers sign a long-term contract. For this reason, you’ll also need to get a clear picture of how rates will look in the future – not just today.


All in all, you can expect to get charged for:

  • A variety of fees – Up front, you may have to pay application or membership fees. In the long run, you could be responsible for fees for individual transactions, chargebacks, authorization and more. Don’t forget to also look at any applicable cancellation or termination fees you may have to cough up later on down the line.
  • Equipment costs – If the merchant account requires you to lease card terminals are processing equipment from them, you can expect to incur monthly or yearly equipment costs. Some may give you the option to purchase the equipment up front, in which case, you would only have a one-time cost.
  • Set-up and integration – If you opt for online card processing, the merchant account may also charge you for the initial set up and integration of your payment gateway and online shopping cart.


Additional Services from Merchant Accounts

With a merchant account, credit card processing is typically the most sought-after service. However, merchant accounts often offer a lot more than that. These extras are intended to entice merchants and offer added value to both their company and their target customer.


Some add-on payment services commonly offered by merchant accounts include:

  • Gift card processing
  • Loyalty programs
  • Cash advances
  • EBT processing
  • Mobile solutions
  • Shopping cart and virtual terminal integration


Many merchant accounts even offer services not related to payment processing, like:

  • Web hosting
  • Web design
  • Online marketing and advertising
  • Search engine optimization
  • PCI compliance
  • Email marketing
  • Order fulfillment and shipping
  • Lead generation strategies
  • Social networking


While you may not need these extras services right away, it’s always good to consider what extra services you could take advantage of in the future, if your budget allows.


How Total Apps Can Help

Are you looking for merchant account credit card processing for your business, but don’t know where to start? Total Apps can help. Contact us today to discuss your credit card processing needs. We’ll help you create a customized, tailored solution that will fit in with your company’s goals and overall budget. Call 949-274-8975 to get started today.


More Information

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