THE MODERN THEORY OF HIGH RISK MERCHANT ACCOUNTS
We all might have come across the word
‘core banking’. It means the same as in
Merchant Account. Merchant account is
also an account that is opened through a
bank but it is a member of the
MasterCard, Visa or other credit card
companies. In a merchant account, a
merchant can accept payments made
through credit cards by the final
purchasers. Since it is a preset or
programmed system, the funds are
transferred to the merchant’s bank
account electronically.
Long before the invention of the
electronic banking systems, it was very
hard to make transactions as many
formalities were to be met. Sometimes it
also resulted in loss of data and many
fraudulent cases. But the latest
technology has overcome all the barriers
to the merchant account banking systems.
The modern theory of merchant account
states that using the electronic banking
systems, a user can access his/her
account from any corner of the world.
This is the greatest advantage that is
experienced by the bankers, the
merchants and the common customers of
the world in recent times. There are
various companies that compliment the
merchant account. Those companies use
logos like VISA, VISA ELECTRON, MAESTRO,
etc. to make use of the credit or debit
card internationally. A merchant account
holder is provided with credit cards
including this logo. A credit card may
have two or three types of logos on it.
These multiple logos are provided by
different companies in order to promote
and make use of their payment gateway in
any type of transactions.
In economic terms, market investigations
are done in order to find which market
situations mostly accept the use of
credit cards. The point of equilibrium
is carefully noted to make progression
in the merchant accounting system. The
banks charge a high rate on the
customers who have a credit card as
rental fees. In the modern day scenario,
it has been eliminated. People who make
maximum use of their credit cards are
charged relatively less as compared to
other users on a monthly basis. The
demand of the credit card and its
services rises when the price falls.
When the cost of funds of any user is
less then the profit margin of the
merchant goes up. This indicates the
existence of the credit card equilibrium
in the market.
When a merchant deals with more number
of customers, he/she can decrease the
discount fees from the bank. The bank
allows a certain percentage of discounts
to the merchant who deals with a
satisfactory number of customers in a
day. The characteristics of the network
goods are clearly defined by the credit
cards.
There are many types of merchant
accounts. In other terms e-commerce is
known for a type of merchant account. It
includes all internet and electronic
dealings while doing business. There
will be no problem if any merchant
account is maintained properly. In any
transaction made via internet, the
merchant and the customer may not be
physically present but the work is
carried out. Only due to the significant
services of electronic banking, all
these circumstances have been made
possible. Thus, the modern theory of
merchant account aims at reaching out to
the people in an effective way. 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. |