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HOW EUROPEAN AND UNITED STATES MERCHANT
ACCOUNTS ARE DIFFERENT
The banks of United States are the
pioneers in issuing credit cards also
processing services of credit cards for
supermarkets as well as big stores.
Since a long time America has been able
to remain as the centre of e-Commerce
merchant online processing of credit
cards.
When the internet shopping started
gaining popularity, American banks
processing credit cards started
providing services (eCommerce merchant)
for almost all internet resources by
selling either services or goods. Of
late the number of banks involved in
merchant accounts has gone up resulting
in a tough competition among them. This
resulted in low prices. This also
resulted in regulations and terms which
could not be afforded by e-Commerce
merchants who were just starters as it
was difficult for them to manage the
high cost. The other drawbacks which
resulted from this were monthly
minimums, risk etc. These all had a bad
effect on several merchant accounts
online. Because of citizenship problems
many merchants who did not belong to
United States could not get an account.
This also resulted in those merchants
who could not get merchant accounts
because of the above mentioned reasons
were facing a loss of revenue which
forced them to find an alternative. They
went to other transaction and CNP
processing services. One example of such
an account is third party merchant
account. They were more easily available
compared to those offered by banks of
United States. Although accessibility
was more the services were comparatively
costly. The methods of payment were also
not convenient.
The emergence and availability of
merchant accounts from Europe brought a
change to the situation. To have a
gateway for processing a credit card
citizenship of United States was not
required. This benefited several
merchants. As a result the processing of
credit cards became easier. This brought
a change to the whole business of
processing of credit cards. Nowadays the
European accounts are equally popular in
United States. So the online merchant
has a choice between European and United
States accounts.
The e-Commerce merchant account of
United States is very difficult to get
for. Although there are processing
solutions for credit cards available on
the internet their high cost is a
drawback. They conduct a lot of survey
before approving gateway for the
merchants which causes a great problem
for merchants as it affects their
transactions.
On the contrary the European accounts
are flexible in terms of their
conditions. Except for the little
research they conduct which is quite
justified as it is concerned with
security.
As mentioned above the competition
between the banks of America is high
resulting in cheaply available merchant
accounts. As such a competition is not
there in Europe the accounts are a bit
costly compared to American accounts.
But there are banks in Europe which
offer services at a reduced rate.
The qualities of the accounts are same.
Hundred percent of quality can be
assured provided the providers are
responsible, respected and decent. Scams
are a possibility any where. |
