Three Types of Merchant Accounts
A merchant account is an account setup between a merchant and a company that processes credit cards that allows the merchant to accept credit cards. However, one size does not fit all. It is not unusual for a business to have more than one type of merchant account, but if looking for only one, a merchant must be aware of the differences in each of them.
Retail merchant accounts are usually associated with businesses such as supermarkets, clothing stores, restaurants, and small hotels or motels. This kind of account is best for merchants who will not being doing any of their business online or through the mail because usually requires that the credit card be present and swiped through a machine. Still, this account by and large offers the lowest transaction fee, so it is perfect for the small business merchant.
Conversely, if your business is mainly online and runs mostly on “card not present” transactions, you can apply for and Internet merchant account. Internet merchants use a virtual terminal and gateway software in order to accept credit and debit cards directly from their website. This kind of account can only be used with online transactions.
MOTO merchant accounts are very similar to Internet accounts. Oftentimes, a processing company will issue the merchant a MOTO account instead of an internet account because both accounts are made to allow the merchant to accept credit and debit cards when the card is not available to swipe. MOTO accounts were originally created, however, to cater to busiIt is not unusual for a business to have more than one type of merchant account, but if looking for only one, a merchant must be aware of the differences in each of them.nesses who received their sales by mail or phone orders. These orders are processed by manually entering the consumer’s information directly into a terminal with a keypad, using a virtual terminal, or, if using ICS, entering the information into a smart phone program or Quickbooks software.
As with anything, it is important for a merchant to choose the right kind of account for their business. Fortunately, ICS has many options to choose from in making the right choice to satisfy your needs.
- Our easy application process takes about 5 minutes
- Accounts are usually approved within 24 hours.
- Save time & eliminate hours of bookwork each week as QuickBooks does the accounting for you.
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