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THE ACTUAL WORKINGS OF A TOBACCO MERCHANT ACCOUNT

No merchant account is possible without the integration of the parties that are included. First and foremost thing which is to be considered in the success of the merchant account is the parties that are involved. The bank and the traditional financial institutions are one of the main factors which are considered as one party affecting the workings of the merchant account. They are also termed as acquirer. They provide the credit card services to the customers. Another main factor of the merchant account is the merchant. A merchant account does not exist without a merchant. These merchants are business professionals who sell products and accept the payments through the credit cards. There is a direct link between the merchant account holder and the customer (card holder).

Different credit card issuing companies or networks such as MASTERCARD® or VISA® and may others are also the main factors that affect the workings of the merchant account services. These companies play a vital role by providing a secure payment gateway to the merchant account services. In fact, they act as a main channel or gateway between the issuer and the acquirer for the authorisation as well as fund transfers. The financial institutions provide financial assistance to the customers as well as merchant account holders. The financial help is in the form of loans and other advances for the business purposes.

Let us discuss how the credit card processing is done in merchant account. Firstly, the card holder makes purchases from the online merchandise business. Once, the customer selects the products for purchase, it is sent immediately for authorisation to the issuing company or bank. The customer has to enter the correct information of the credit card in order to make purchases through the card. Once, the transaction is requested, it is verified for the correct database of the credit card. Once, all the formalities are one and are correct, the purchase is approved to the customer. After the approval, the requested transactions are kept in batch according to the priority. Then it is submitted for the funding purpose. The actual amount of the transaction is submitted to the issuer. The issuer pays the amount or the fund ids directly transferred t the merchant account holder’s bank account. Finally, the amount of the transaction is billed against the customer or the card holder by the issuing company. This is the actual working of the merchant account services.

The processing of any transaction usually takes 3 working days. But these days, due to the effective merchant account services, it can be done on the very next day of the approval. In some cases, where an error occurs during the transaction, the issuing company immediately denies and returns the faulty transaction to the acquirer. A charge back fee is charged to the merchant account holder in such cases. It is mandatory for the merchant account holder as these are the rules set by the laws. However, the merchant account system is beneficial to the merchants as well as the customers and the bank. 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.