If you are the owner of an online store, then of course you understand how important it is to use various payment systems for a successful business. This rule also applies to credit cards. Our society has almost completely switched to cashless payments and more than 80% of people prefer to pay with credit cards. WELLCOINPAY will help you open a trading account quickly and conveniently so that you can increase the number of sales on your website, as well as raise your business’s cash flow to a new level.
At the same time, you will not be able to work with payment systems on your own. Before that, you will have to go through a difficult process – open a special account, conclude an agreement with a service provider, etc.
What is a merchant account and what is it for?
A merchant account is a special tool for accepting and processing payments from bank cards, e-wallets, and personal bank accounts of users. Such an account is capable of performing more than a thousand transactions every minute while allowing a businessman to attract new customers and provide them with quality service. A merchant account also differs from a regular account in that it has a “linked” web interface, through which the site’s clients pay for services or goods by entering their bank card details.
The company that accepts payments on the site is issued an identification number, thanks to which you can automatically transfer funds from customer cards to the company’s account. The number is tied to the company’s bank account, and after the buyer clicks the “Pay” button on your website, the money debited from his card will be sent to the merchant account. The acquiring bank will automatically adjust its transfer to the seller’s account.
To process customer payments, it is necessary to conclude a contractual relationship between the company, the bank, and the payment card processing center.
Benefits of using
Using a merchant account is very convenient, it provides several advantages:
- Round-the-clock service. Each client of the site can pay for his purchase at any time of the day or night, on weekdays and weekends, so that the work of companies that own a merchant account does not depend on the opening hours of banks. This will significantly increase the number of buyers of goods or services.
- Lack of exchange controls.
- When working with a merchant account, currency control and financial monitoring are not applied and there are no requirements for issuing a transaction passport.
- Settlement speed. A merchant account makes it possible to carry out about a thousand transactions per minute.
- Optimization of taxation. Opening a merchant account for an offshore company allows you to conduct uncontrolled and tax-free business around the world.
Types of merchant accounts and their application
There are two types of merchant accounts – trade and internet accounts. The difference between them lies in the presence or absence of a bank card at the time of payment.
Trading merchant account
This type is used in cases when purchases are paid with the provision of a card, the information from which is read by special equipment (POS-terminals or imprinter). Trading merchant accounts are used in regular stores.
Online merchant account
This method of registering an account is used if the client prefers to make remote payments via the Internet. In order to complete the operation, you just need to enter the necessary data and indicate the amount to be debited from the account. After that, the money almost instantly goes to the company’s account and the payment for the goods can be considered complete. Such a system is used on all online platforms where goods or services are offered for money. However, this type of account is in demand not only among store owners – but it is also actively used by online brokers, gambling establishments operating on the Internet, investment companies, dating sites, and so on. This type of account is used most often and ranks first in popularity.
How to open a merchant account?
A merchant account can only be registered for a legal entity. Banks impose very high requirements on applicants for opening a merchant account and set certain conditions for registering such an account. Such accounts are opened in the bank, and it is not a quick matter, but some companies can take on the task of going through all the formalities.
In addition to a registered company, to open a merchant account, a website is required through which payments will be made. The site should contain a full description of the goods or services offered by the company, including all available payment methods, current prices, a detailed description of the ordering method and exchange conditions, as well as refunds, information on the rules for the provision of services and delivery options for goods, the company’s policy in working with confidential user data and complete company data. Also, the site must have an authorization and registration section.
To obtain a merchant account, you need a site located on a paid hosting, and all web pages must be in the same domain zone. It is recommended to place the logos of the international payment systems with which the company works (for example, Visa, MasterCard) on the home page. The bank card details of the users should be requested only on the secure pages of the processing center, and not on the website pages.
A current account of the company opened with a reliable bank is also required. The choice of a bank is an individual matter, it depends on the type of activity of the company and its requirements. However, it is better to open a bank account, where there are no restrictions on the number of transactions since the activities of companies interested in a merchant account are usually associated with frequent payments. Besides, the bank must have an appropriate processing license.
If you decide to start opening such an account yourself, be prepared to provide the following information to the bank:
- the type and detailed description of the goods or services provided by your firm.
- set of corporate documents: charter, certificate of registration, memorandum of association, license, company current account;
- credit history of the company;
- geography of activity, sales volume and the approximate amount of one payment;
- personal data of the owners of the company;
- site address through which payments will be accepted;
- details of the refund policy.
A few days after submitting the application and submitting the entire package of documents, a letter comes from the bank with a contract prepared for signing – of course, if the application is approved. After signing the contract, one copy remains with the director, and the other is sent to the bank. Then the bank issues a merchant ID, instructions for system integration, and encryption keys, after which the programmer performs system integration. From this moment on, it will be possible to pay with a bank card on the company’s website.
Now you know what a merchant account is and what advantages it has. By connecting such a system to your site, you will not only increase the influx of new customers but can also significantly increase the profitability of your business.