Ecommerce Merchant Account – Benefits For Owner And Customer

The term for the practice of accepting credit cards for an ecommerce merchant account is “card not present.” This means that you – the merchant – never had the credit card in your hand when the transaction was made. The result is a different set of rules and fees than for the company that physically accepts the credit card, swipes it through a card reader, and completes a transaction. The ecommerce merchant account has to be particularly careful when accepting credit cards because there is a larger potential for fraud and return charges, but there are some definite benefits to the ecommerce merchant account holder that will likely make these risks worthwhile. The biggest benefit is arguably convenience because ecommerce businesses with a merchant account established have the ability to allow customers to quickly take care of debts. By the same token, money is transferred to the banking account associated with the ecommerce merchant account and the business owner doesn’t have to worry whether a check is going to bounce or mail is going to be delayed. It’s important to note that a retailer’s account that allows you to collect credit cards does not cover online transactions for ecommerce. It also doesn’t

allow the holder to make credit card transactions via phone, fax or mail. The difference is the fee schedules because of the higher risk of fraudulent credit card use when the merchant doesn’t physically see the credit card or the user. Setting up an ecommerce merchant account is fairly simple. You’ll typically need a business license, a checking account and a website. That’s pretty much it and your ecommerce merchant account can be up and running very quickly. Depending on the type of ecommerce you are conducting, you can even find an ecommerce merchant account provider that will help you set up for receiving regular payments at a specific time each month (or any other cycle of time).