REPLICA
MERCHANT ACCOUNT FOR SOCIAL WELFARE
The world of technology has reached to
that extend that credit cards are
accepted for payments of social
organisations. A social merchant account
is also a bank account which has a very
low rate of income. This type of account
is normally provided to charitable
trusts or NGOs which are meant for
social services. Donations are the key
factor of income for such organisations.
People who are very wealthy donate huge
sums of money to NGOs and charitable
trusts. It cannot be made sure that they
always carry money with them. So a
social merchant account holder is also
provided with electronic banking
facilities.
A card terminal can be used by a social
merchant to receive payments through
credit cards. Most of the people use
their credit card to make payments for
the transactions that they make. There
is also a special discount rate for the
social merchant account holders for
processing of credit cards. The
registration fees for this type of
account are also less as compared to the
other merchant accounts. “The term
social merchant account is used in a
general sense to denote an organised
arrangement of all transactions, actual
or imputed, in an electronic banking
system”. In social merchant account, a
merchant has to keep a set of accounts
in which transactions are entered.
Incomes and outgoings related to a
productive activity of the merchant are
bought together. This shows the assets
and the liabilities of the merchant
concerned at the beginning and at the
end of the accounting period.
NGO products also exist in the market
and they are cheaper in price. They
charge lesser prices only to support the
organisation. It is somewhat like
serving the society but some charges are
applicable here. The funds raised by
such organisations are given for the
social welfare of the people. A normal
merchant account needs a bank statement
of two years in order to protect
fraudulent cases. A thorough check on
the background of the NGO is done by the
bank before issuing the merchant with a
social merchant account. If an NGO or
any charitable trust fails to fulfil the
criteria set by the banks to provide a
social merchant account then they are
directly refused by the banks. the
merchant account holders are concerned
with the statistical classification of
the economic activities so that we are
able to understand clearly and easily
the operation of social merchant account
as a whole.
A Social merchant account embraces not
only the classification of merchandise
industry but also the application of the
information based on the operation of a
merchant account. The incomes and
expenditures that are related to a
productive activity of the social
merchant are bought together for the
welfare of the society. There is normal
profit or no profit for the social
merchant account holders but the use of
the merchant account is for accepting
payments from the customers. The funds
are invested on the working structure
and maintaining the costs incurred while
holding a social 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. |