FEW TERMS AND CONTRACTS USED IN FOREX ECOMMERCE

Ecommerce is selling and buying goods on the internet.

High Risk Processors

Brokers or high risk processors are financial companies or institutions which provide processing services for high risk businesses. They charge higher rates and higher transaction fees because they face more risk. Some processors offer added features like secure lines or forms for ordering, web site templates and shopping cart applications.

Ecommerce

This is a new term that is used for commerce which is conducted completely over the net.

Merchant Account

The merchant account is a special kind of account that a business has to open with any merchant bank to accept payments through credit cards from the customers. The financial institutions or banks have strict regulations to issue merchant accounts. Many home based and small businesses report about their difficulties to acquire a merchant account. Once the merchant status is received you have to purchase or rent special software and hardware to process credit card transactions. The most important hardware required for retail stores in the credit card terminal where the credit card can be swiped.

There are different types of merchant account’s of which the Internet merchant account is the most popular. It allows you too accept credit cards through the internet. The complete transaction is processed online and in real time. Within 10 seconds the credit card will be checked to see it is reported as stolen or expired. It shipping address and the customers address is checked to see if they are the same. If there is no problem, the transaction is approved and the sale transpires. This account is a stricter relationship between the bank and its accounts holder. Transactions done on the web don’t require signatures which exposes it to a high risk of fraud.

Merchant brokers help companies to obtain merchant accounts. You will have to pay them a setup fee. They also sell or lease hardware and software as needed. You also have to pay discount rate that is a percentage of every transaction and many other fees for different kinds of services. If you cannot obtain a credit card account from a bank then merchant brokers is the best alternative for you.

Micro payments or Micro transactions

Micro payments are transactions that involve small amounts ranging from just a few cents to a few dollars. These transactions occur when a customer wants to download a game or graphic or access some information.

Phone cash

This option is for customers who don’t prefer to pay by credit card. The type of payment allows customers to transfer their bill from one account to another.

Telephone Billing

This is a new and innovative approach that allows customers to make purchases and charge it to their phone bill. This method is used mostly for soft items, time measured services and for charitable donations.

With so many options available to make payments the retail industry is all set to boom. The major winners are the customers provided they use these options carefully. 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.