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When is a SPORTSBOOK merchant account needed?

The growth of online business is exponential. The growth of the ecommerce movement is not taking place in drove, but in legions. The main reason behind the increasing growth of this is obvious: the worldwide reach, the market, and exploration of unchartered territories. With several people using the internet, a merchant business only gets better by setting up an online shop. However, for this to happen, a person will require tools. These tools are simply the applications and software that are required to get the best of online businesses.

For the setting up of a website, a number of things will be required especially the one from which payments can be received. One among these will be a merchant account. However, for several businesses that operate online, merchant accounts will no be required. Simply put, a merchant account is a special type of account which is provided by certain firms to a person in order to accept both offline and online payments. For example, when a card is swiped at a restaurant the payment will be made to their respective merchant accounts. Almost all the offline firms have merchant accounts already. Many of the online payment processors make use of a merchant account for their trade and also to accept the payments made by clients.

Most of the traders who own small businesses usually do not require merchant accounts. This is because they already have the option of 3rd party processors like e-junkie, PayPal and Citibank. If a business comes under the small business category, then there is no requirement for opening a merchant account. It is best to use 3rd party processors who act as go-betweens. All that needs to be done is to register with one of these firms. Once consumers make purchases or buy products from these merchants, the 3rd party processors help in collecting the payments for the total sale’s percentage. The charges which could be collected could vary from 0.04% to 10%.

When large orders need to be processed or when a person wants to be independent, then he/she will have to acquire a merchant account. Many offline firms already own merchant accounts since it is not necessary that only online trade needs to have merchant accounts. Merchants can use this type of account in order to accept payments for their offline trade too.

The main why many trades who own online businesses do to want or prefer getting merchant accounts is the acquisition cost and overhead involved. When a merchant has his/her own merchant account, then the payments need not be processed through third party processors. However, one must remember that the merchant is responsible for chargebacks, payment processing, refunds and the other hassles that accompany the acquisition of a merchant account. However, merchant accounts are beneficial when there is large business volume and if one does not want to shell out for using 3rd party processors. Hence, it is best to see the advantages that an individual merchant has before acquiring a merchant account. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.