Get a
High Risk
Merchant Bank Account and Enjoy
Increased Sales
Credit card transactions are an
important part of business today – they
help the customer enjoy cash-less
shopping and increase the sale of the
shop-owner. Their understanding is
important for any awakened citizen.
A Merchant Bank Account is a contract
between a business proprietor and the
concerned bank in accordance with which
the bank promises to extend a line of
credit to the merchant. Intermediary
service providers like Paypal have
merchant bank accounts of their own.
The businessperson avails himself of a
Credit Card Terminal – which is
primarily an electronic equipment
provided with a magnetic stripe reader
where a credit or debit/ATM card is
swiped, apart from having a keypad
through which additional card details
may be punched in. Most Credit Card
Terminals ought to be plugged in to an
electric power point and to a telephone
line as well, but some systems do come
with a battery backup and may utilize
internet connection or cellular phone
network to communicate. If the
transaction is validated, the customer’s
receipt is printed out using the printer
that comes attached with Credit Card
Terminals.
An alternative to Credit Card Terminals
is the Automated Response Unit. A simple
cellular phone or landline telephone
keypad is used to enter the data of a
given card and the authorization of the
card is then carried out. An imprinter
is used to imprint the customer’s card
and the receipt is thus created.
The link between Credit Card Terminals
and the acquiring bank is the Payment
Gateway. This is an e-commerce service,
which authorizes and safeguards credit
card payments. The credit card details
of the customer are sent to the payment
gateway via a Secure Socket Layer (SSL)
encryption that is responsible for a
hacker-proof transfer of sensitive
details. The payment gateway then
forwards this data to the bank wherein
the tradesman has the merchant bank
account.
The acquiring bank now sends the payment
details to the card issuing bank. The
issuing bank checks the status of the
customer’s account and, depending upon
it, validates or nullifies the deal. It
sends a message back to the acquiring
bank regarding its verdict on the deal.
The response also consists of a
particular Response Code, which may be
used to identify the cause of
invalidation of card payment, if any.
The fate of the deal is communicated to
the payment gateway, which reverts to
the tradesman at his credit card
terminal. The procedure typically takes
no more than two to three seconds. If
the transaction terminates smoothly, the
amount obtained is deposited in the
businessperson’s nominated account by
the acquiring bank.
Depending upon the amount and type of
credit card transaction data provided by
the tradesman, the processing fall under
three categories – level 1, level 2 and
level 3. Level 1 is the standard, and
includes the barest minimum details like
the date of transaction, merchant’s name
and location. Level 2 data incorporates
tax ID, Merchant Category Code and
Merchant Type Code apart from the
standard information. Level 3 data
include more detailed insight into the
transaction and hence include Item
Product Code, Item Description, Item
unit of measure, Item quantity, Item tax
identifier, Freight Amount and Item
Discount indicator apart from others.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account,
high risk ach account or
offshore merchant account for a
high risk merchant. |