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Merchant Accounts-An Overview
Contract plays pivotal role in merchant
accounts which is done under a set
understanding between the acquiring bank
and merchant in line of credit being
extended by the former party. This deal
is finalized according to an
understanding that the card transactions
done by a customer would be settled by
the bank based upon a trust developed
while the card was issued. This way
payment process is made easy and
instant. Later the lending bank requests
its valued customer to repay the amount
which it had paid to the merchant for
him/her at the time of need.
Merchant accounts are crucial in
developing a bond which supports the
financial security and pleasurable
experience for a card holder. No payment
can be completed without such contracts.
Acceptance of payments by the merchant
is possible through the credit cards
only when this mutual bond progress.
Service provider keeps hold of merchant
account in a particular occasion when
intermediary payment service options are
in the midst of a transaction.
Credit card payment options follow set
rule in which all electronic
transactions are finally sent for
approval to the merchant processing
banks. Once the bank authorizes this
payment through capture and deposit
process, transaction gets finalized.
There are several methodologies to
fruition this transaction process.
Credit card may be presented to a
merchant who uses it for approval by the
bank. The merchant swipes it in an
electronic machine which reads the
magnetic strip when transduction is
ordered by the customer. Credit card
terminal plays pivotal role in this
process which reads the credit card
information.
Manual reading is performed through
swiping the credit card in the terminal
set in a machine or in the computer. In
web based transactions, credit card
information is put which is being
tallied by the merchant with the issuing
bank and finally the information is
approved which allow for transaction.
Electronic devices have made
transactions easier and safe now. But
traditional method of submitting credit
card slips to the merchant for
processing through a bank which access
an Automated Response Unit (ARU) through
telephone is still in practice. It is
therefore notable that a secure, safe
and hassle free transaction by credit
cards is an easiest option for the
customers and for merchant as well.
But this entire transaction process is
done through a command by the bank after
the scanning of details by the merchant.
Proper verification is done by the bank.
Interestingly this entire process is
done in a fraction of seconds. Approval
is done soon after its electronic
verification is completed by card
issuing bank.
Technical developments and easy payment
methods have made credit card
transactions easy. Many secure and
effective measures are here to safeguard
any sort of conniving incident and the
nefarious modus operandi is discouraged.
Traditional methods to verify merchant
account by use of two-part form and
manual device to mechanically imprint
the embossed card number information are
still rampant. Shop with credit cards
safely but be careful to avoid untoward
happening. |
