Merchant providers have proven their worth in every business – may it be small or big. And because of this, new businesses are also involving themselves in using this as most consumers do not pay for their goods using cash.Because of this, they are considering merchant account provider to help them in collecting funds without the need of letting the consumer pay cash directly. However, the challenge comes in knowing which merchant provider to choose.Kinds of Merchant Accounts There are two types of merchant service accounts: the traditional merchant accounts and internet merchant accounts. Both of these receive funds while using a debit or credit card but it works differently. A traditional merchant account usually charges less than internet merchant account. This kind of merchant account uses a physical credit card for payment. Therefore, there is little risk of theft or fraud.
On the other hand, the internet merchant account charges more since it processes using the internet, over the phone or through mail order. The risk of fraud is higher since the credit card is not physically present during payment.This is because, during actual payments using a credit card, the merchant can ask for the consumer’s ID, have the signature checked or let the consumer enter his PIN number on the terminal. Thus, it does not entertain theft or fraud. On the other hand, the merchant won’t be able to do this when the consumer only processes his payment over the phone, internet or mail order. Because of this higher risk, merchant providers just provide a higher charge. Therefore, it is up to you on how you want to pay using your credit card.