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A NOTE ON NON-BANKING FINANCIAL MERCHANT
ACCOUNT
We all know what a bank is and we also
know its functions. But there are other
financial institutions which provide
monetary help and the same procedures as
the banks do. They also provide loans
and deposit mobilisation but in a
different way. These are called
non-banking financial institutions.
Likewise, a merchant can also manage
their account to provide financial
activities to the customers.
The merchant acts like a middleman or
intermediary who transfers funds from
the ultimate money lenders to the
original borrowers. The merchants issue
their own liabilities to the customers
in order to obtain funds and they use
this money to buy financial assets like
stock, mortgages or bonds for
themselves. In this manner, the
merchants intermediate between the
original savers and the final borrowers.
In economic terms, the merchants holding
such accounts provide liquid assets to
the customers as their liabilities are
kept as close substitute for money. A
merchant account provides mobilisation
of the use of various accounts. Multiple
credit card facilities are kept before
the customers to choose from. The
customers can easily make payments
through their credit cards after a few
necessary steps. During the early days,
these non-banking financial merchant
accounts took place in many places
especially over the southern part of
Asia. It was started from money lending
systems. The merchants would operate the
transactions from home.
After the invention of the internet
banking systems, every merchant account
has been promoted to a high level of
business progression. The technology has
left its significant evidence spread as
a revolution to the banking systems.
Non-banking financial merchant account
makes the same margin of profit as a
commercial bank makes in a year. But the
number of customers is less in the
non-banking financial merchant account
system. According to the economic
development and a rise in the electronic
banking system like e-commerce, a new
set of ideas has been improved. A new
membership group has been formed in
order to maintain a healthy relationship
between the merchants and the customers.
Now the customer can register themselves
with the merchant account. Instant
provision of a user-id and password is
made. This way both the merchant and the
customer can access into their account
to check the transaction details. In
modern day banking sector, commercial
banks are concentrating more on the
secondary functions, draft, credit
cards, safe locker, etc. This is
according to the change in the economy.
This is essentially increasing the
employment opportunities and it is based
on success and failure of monetary
economics. The merchant account holders
have neglected the importance of
providing employment with an intention
of bringing about modernisation as well
as profit as the main procedure of
judging the implication of the bank. The
non-banking financial merchant account
is considered as a competitor of the
commercial banks.
Sometimes, a non-banking financial
merchant account cannot be trusted as it
may vanish into thin air. One must check
properly and should collect as much
information before opening a merchant
account. Fraudulent cases have also been
reported against some non-banking
financial institutions |
