What Is A Merchant Account And How Can It Help Your Business

It’s almost impossible to picture today’s online shopping without the option of using a payment card to make a purchase. To offer this type of service to customers, however, online business owners need to set up a merchant account.

In this post, we will get to the bottom of what a merchant account is, how to open one, how it works, and the underlying idea behind it, as well as the various nuances that must be factored in.

What is the merchant account:

Merchant accounts enable business owners to accept credit card payments anytime, day or night, regardless of the acquiring bank’s business hours. The buyer’s payment will be processed immediately regardless of the time of day or weekday/weekend it was made.

The ability to accept payments from customers in multiple countries is another perk of having a merchant account, which can help a business grow internationally.

Who or what are the merchants:

As the term itself suggests, a merchant is basically someone who is engaged in trade; it can be either an individual entrepreneur or a trade company.

Requirements imposed on merchants by various payment methods and platforms:

You must be a legitimate business or duly registered entrepreneur in order to sign up for Internet acquiring and set up a merchant account. Aside from having a valid business license, the entrepreneur must ensure that their website or mobile app meets specific requirements.

Here’s a small list of what these requirements typically are:

— There must be no broken links or error messages on the website or app.

— All products listed in the catalog should have a description and relevant characteristics. 

— Business activity corresponds to the area specified in the registration form.

— Details on shipping and returns are provided. 

— Customers can easily locate the section with contact details, which contains up-to-date information.

What else should you know about merchants:

An intermediary account that is linked to the primary bank account of an entrepreneur or a trade company is what is known as a merchant account.

Payments made for products or services are held in a merchant account until they reach a certain threshold, at which point they are transferred to the specified bank account. In other words, a business or trading company can use the funds it receives from customers in the future rather than right away.

There are high-risk and low-risk merchant accounts depending on the nature of the business and the potential for chargebacks.

It takes longer to open a high-risk account because additional paperwork is required. The risk is determined by the bank where the account opening application is submitted.

Types of merchant accounts:

There are two sorts of merchant accounts: traditional accounts and online ones. A traditional merchant account is used in regular shops where customers use point-of-sale terminals to pay for purchases with payment cards. An online account is a tool that e-commerce companies use and is crucial for online retailers.

What does the payment procedure look like:

When it comes to making payments for purchases, the process looks like this from the perspective of the buyer: first, the product is added to the shopping cart; then, the buyer chooses the form of payment (typically, a payment card). Finally, the customer enters the card number, the expiration date, and the CVC/CVV code and confirms the transaction.

The payment gateway does a fraud check on the transaction when the buyer enters their card number, expiration date, and CVC/CVV code. After confirming the buyer’s identity and the validity of the card, the necessary amounts are then withdrawn from the buyer’s account and wired to the online retailer’s merchant account if everything checks up.

All of the aforementioned payment procedures should proceed without a hitch and take no more than a few seconds once the processing has been well adjusted. To ensure the smooth running of your business’s financial operations, it’s vital that you open a merchant account with a reputable financial institution that has been around for some time.

If you run a business that operates on a global scale, registering a merchant account with a financial institution based in your own country will drastically slow down the process of receiving payments. In this particular scenario, it makes sense to start things off with people who work internationally.

When picking a system or platform for opening a merchant account, you need to factor in the ease of use, the payment processing speed, the average rate of successful conversions, the support for various payment methods, and the availability of various payment instruments.

How do you open a merchant account with SharPay:

A merchant account is a crucial tool that allows you to process payments made using credit and debit cards, which are often made through online and point-of-sale (POS) transactions.

From the moment a customer hits “buy” or swipes a card at your POS until the moment the funds are credited to your business account, a merchant account provider is behind the whole transaction processing magic.

Although it may appear to be a lengthy procedure, the most challenging part is picking a service provider that can facilitate efficient and effortless transaction processing.

SharPay is a leading fintech platform that streamlines the process of opening a merchant account and automates online sales transactions. Having a SharPay merchant account grants you access to a cutting-edge and trustworthy financial platform, as well as a smooth procedure for integrating it.

You can use SharPay to accept payments in multiple currencies straight on your website, social media, and even instant messengers. Smart checkout solutions enable the processing of payments made by card, cryptocurrency, banking, and other methods.

When receiving money as well as sending it, you have a number of payment options to choose from. You are free to pick the ones you wish to use and send us a request to get them activated. The key benefits that cannot be ignored include low costs, a single API, multi-currency payments, and minimal payment delays.

You can submit a request for a merchant account remotely. Just fill us in on your company and its needs. After that, our team of seasoned experts will review your request and get back to you shortly.