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Choosing a Merchant Account SolutionThe type of merchant account solution you choose should be based on the type of business that you have – retail, internet or mail order/telephone order.Retail Merchants Retail merchants that see their customers face to face should choose a retail swipe terminal as their merchant account solution. The processing fees for retail merchants are the lowest because orders that are swiped have a lower risk of fraud and chargebacks. However, the upfront costs are steep since you will be required to purchase a swipe terminal. You should expect to pay about $300 for a new terminal. Numerous brands are available such as Hypercom, Verifone, Nurit, etc. Each brand functions and operates differently, so it is recommended that you shop around. Internet Merchants Internet merchants will need an internet gateway service as their merchant account solution. This will allow for real time processing that will be handled automatically when customers enter their credit card information. There is no software to load with real time processing. You simply set up an order form on your website to send the information to the gateway provider. The money will then be deposited to your account within two to three business days. Processing fees for internet merchants are higher than retail merchants since there is a greater risk of fraud. Mail Order/Telephone Order Merchants If you expect to receive your orders by mail, fax, or phone, then it is suggested that you use a virtual terminal service. This is a secure website that you can log into and manually enter your transactions online. Your information is securely processed and the money will be deposited into your account within two to three business days. Note: This service comes with most real time processing solutions at little or no additional cost. |
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