merchantaccountinfo's Journal: Key Advantages to Using an E-Commerce Merchant Account

To say that the Internet has changed the way people do business would be an understatement. Many of the conveniences we enjoy today, along with the technology behind them have been developed specifically to meet the needs and demands of both suppliers and consumers. To people conducting business online, safety, security and speed are of utmost importance, particularly when it comes to payment processing. There is no question that having an e-commerce merchant account can be very useful for fast and easy online payment processing .

Performing business transactions online

Paypal is a very popular form of electronic payment transaction. It is an option used by many business websites, both corporate and personal. Paypal is similar to a merchant service in that it also processes payments online. However, the comparison stops there.

Paypal is a third party service that allows anyone to send and receive payment. It is easier to set up than a merchant account and is actually free of cost to open. However, there are certain advantages to having an e-commerce merchant account that cannot be readily enjoyed using a payment processor like Paypal.

What can an online merchant account do for your business?

A company offering merchant services acts as a third party payment processing agent. It offers a variety of options to allow both business owner and customers to transact without worrying about handling cash, completing paperwork and performing a background check. Compared to Paypal, an e-commerce merchant account can offer:

Direct deposit

Any client or customer paying through a merchant service deposits money directly into the sellers bank account. With a payment gateway like Paypal, the money gets deposited to the processor and stays there where it can be used to send payment. The seller, however, cannot use the money until after it is transferred to his or her bank account.

Once the transfer has been initiated, the seller must then wait for the funds to be deposited to his or her bank account. This takes 2-5 days. With a merchant account, the funds get transferred the moment the seller is paid.

Direct management of the account

With an e-commerce merchant account, sellers can monitor and manage all transactions that occur in real time. They can set limitations, void transactions, set up recurring billing charges and even issue refunds.

Integrate credit card processing terminals with an account

Most businesses make use of a terminal that processes credit cards, such as a POS system. For convenience and fast transfer of funds, this terminal can be set up to connect with their merchant accounts. With Paypal, this cannot be done.

Lower transaction rates

An e-commerce merchant account carries a lower rate for transactions. With Paypal, rates vary depending on sales volume per month, so it is possible for the seller to be charged a higher amount for lower sales volume in a month.

Trust factor

Anyone can open a PayPal account but an e-commerce merchant account has more stringent requirements. A merchant account projects a kind of legitimacy that is not easily achievable with just PayPal alone.

Support and flexibility

An e-commerce merchant account service offers more personalized support since there is a dedicated representative that handles the account. It is also possible to set up a customized approach to a merchant account that meets the needs of the business. Furthermore, it offers enough flexibility so that it can evolve as the business grows.