Merchant Accounts

When you are starting a business, one of the first things you need to do is set up a merchant account. This allows you to process payments from your customers. There are different types of merchant accounts, and it can be confusing trying to figure out which one is right for your business. In this article, we will explain the different types of merchant accounts and help you decide which one is best for you. So, if you’re ready to learn more about merchant accounts, let’s get started!

High-Risk Merchant Account

We’ll start with the most interesting one: the high-risk merchant account. This type of account is for businesses that are considered to be high risk by the banks. This can include businesses in certain industries, such as gambling or adult entertainment, or businesses that have a lot of chargebacks. In addition, high-risk merchant accounts are used for credit card processing for bad credit, and they often come with higher fees. These accounts are great for businesses that need to process payments but might not be able to get approved for a traditional merchant account. Also, if you are a business that is considered high risk, you might not have any other choice but to get a high-risk merchant account.

Multiple Merchant Accounts

Another type of merchant account is multiple merchant accounts. This is for businesses that need to process payments in multiple currencies. If you are doing business internationally, or if you want to accept payments in multiple currencies, you will need to get multiple merchant accounts. This type of account can be more expensive than a traditional merchant account, but it is worth it if you need to process payments in multiple currencies. In addition, with these accounts, you will often have to pay a higher fee for each transaction. But keep in mind that this can pay off since you will be able to accept payments from more customers.

Internet-Based Merchant Accounts

Internet Based Merchant

An internet-based merchant account is for businesses that want to process payments online. This type of account is perfect for businesses that sell products or services online, such as e-commerce stores. In addition, if you are a business that needs to process payments but doesn’t have a physical location, an internet-based merchant account is a great option. With an internet-based merchant account, you will be able to accept credit card payments, as well as other types of payments, such as PayPal. In addition, these accounts often come with lower fees than traditional merchant accounts.

MOTO Merchant Account

MOTO stands for mail order/telephone order, and it is a type of merchant account that is perfect for businesses that take orders over the phone or by mail. If you are a business that takes orders by phone or by mail, such as a catalog company, you will need to get a MOTO merchant account. These types of accounts often come with lower fees than traditional merchant accounts, and they are perfect for businesses that don’t have a physical location. However, with a MOTO merchant account, you will only be able to accept credit card payments. This can be a downside if you want to accept other types of payments, such as PayPal. In addition, keep in mind that MOTO merchant accounts are not available in all countries.

Traditional Merchant Account

Last but not least, we have the traditional merchant account. This is the most common type of account, and it is for businesses that want to process payments in person, such as at a physical location. With a traditional merchant account, you will be able to accept credit card payments, as well as other types of payments, such as cash and checks. In addition, these accounts come with a lot of features and benefits, such as the ability to process payments in multiple currencies, as well as the ability to set up recurring billing. If you are looking for a merchant account that will give you the most flexibility, then a traditional merchant account is likely the best option for you. And when it comes to fees linked to traditional merchant accounts, they are typically very reasonable. In fact, many traditional merchant account providers will even offer you a free trial period to test out their services. 

Now that you know about the different types of merchant accounts, you can decide which one is right for your business. If you are still not sure, then the best thing to do is to speak to a merchant account provider about your specific needs. They will be able to advise you on which type of account would be the best fit for your business. 

40 COMMENTS

Comments are closed.