INTERNET MERCHANT ACCOUNT

Internet Merchant account allows merchants to accept credit card payments through the net for the services or products. Once a seller has agreed to accept payments by credit cards through the net, he should get the virtual terminal or payment gateway and a processor or a bank to do the processing of the transactions made through the credit card.

“A Payment Gateway” is nothing but a secure bridge through the internet between the merchant’s web site and the networks of the credit card processors. Once obtained, the merchant will be able to transact online using the credit card or several other methods for processing payments such as e – checks using the payment gateway.

There are some ways for the owner of a web site to perform processing of credit cards or other alternative processing of payments. One among them is the “Virtual Terminal”. It facilitates authorization and then processing of the credit cards manually and also checking the business transactions from anywhere in the world using a computer. However, internet connectivity is necessary. A Virtual Terminal acts like an alternative for the regular authorization terminal, thereby allowing the owner of the business to process the transactions without the check or the credit card. All that is required by the business owner is some information from the credit card, check and consumer and also a connection to the internet.

An alternative to the internet merchant account is Weblink, which allows internet – based businesses to process and approve transactions without entering any information related to the credit card or the consumer. When the customer wants to buy anything from the web site he enters the information that is necessary. What Weblink does is captures information such as number of the credit card, name, etc from the secure page of the website. After the authorization is over, the customer receives a reply, in less than twenty seconds and the owner of the business is also informed. Transactions are settled every day and routed to the bank account of the business owner within 3 to 4 days.

In most cases this “internet merchant account” is given to a merchant through an acquirer or an acquiring bank. They usually allow the business owner to accept al payments through credit card and in a few cases other online payments also.

Generally speaking, the advantage of the Internet Merchant Account revolves around the fact that the business owner has direct control on the system which processes customer payments. But, the disadvantages are due to the fact that the logistics, security and mechanics of being held responsible for the whole payment process. Some of the other advantages include:

• Convenience – The “Internet Merchant Account” saves online customers the inconvenient task of writing and posting a check for the product they purchased online.
• Superior Functionality – By using the “Internet Merchant Account”, websites can be direct generators of sales.
• Instantaneous authorization – With the automated authorization and reply the customer will know the status of his purchase on the spot.