merchantaccountinfo's Journal: Facts about E-Commerce Merchant Account

Internet has brought about great advantages in the field of business, and technologies have been developed specifically to meet the requirements of consumers and suppliers. For people who conduct online business, the speed, security and safety online is extremely important, especially when it is regarding payment processing. There can be no doubt that for easy and fast online payment processing, an e-commerce merchant account is indispensable.

Online Business Transactions

Paypal has become quite popular for transacting electronic payments. This service is used by numerous personal and corporate business websites. Paypal and a merchant service are similar as both process online payments. But the similarities stop there.

Paypal service is third party that enables anyone to receive and send payments. Opening and setting up the account is free and easy compared to a merchant account. But certain advantages are not there in Paypal which can be enjoyed when you open an e-commerce merchant account.

What can your business expect from a merchant account online?

A company providing merchant services is a third party agent for payment processing. The service provides different options which enable customers and the business owner to do their transactions without having to worry about doing background checks, completing paperwork or handling cash. In comparison to Paypal, the e-commerce merchant account offers:

Direct Deposit

The customer or client making a payment using merchant service will be directly depositing the money into the bank account of the seller. In comparison Paypal is a payment gateway and the amount gets deposited in Paypal and will stay there until the payment is sent. The seller can only use the money only when it comes to their bank account.

After the sale, the seller needs to wait until the money is deposited in their bank account, which can take 2 to 5 days. But with the merchant account the transfer of funds is immediate as it comes directly into the bank account.

Managing the account directly

Sellers having e-commerce merchant account can manage and monitor all their transactions in real time. They have more control by setting up limitations, recurring billing, getting transactions void and also issue refunds.

Integration of account with processing terminals of credit card

Many businesses use POS or other system that uses processing terminal for credit cards. Such a terminal can be connected with the merchant account for fast and convenient transfers, which is not possible with Paypal.

Transaction rates are lower

E-commerce merchant account works out cheaper, as Paypal rates keep varying with the monthly sales volume. So if the volume of sales is low the seller will have to pay more.

Trust Issue

A Paypal account can be opened by anyone but there are stringent requirements for the opening an e-commerce merchant account.

Flexibility and Support

More personal support is provided by an e-commerce merchant account as dedicated representatives handle each account. Customization is also available to the particular needs of the business.