Creating a Merchant Account

Todays’ consumer's world relies mostly on credit, so it has become mandatory for almost every business owner to own a merchant account. A merchant a

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Creating a Merchant Account

Todays’ consumer’s world relies mostly on credit, so it has become mandatory for almost every business owner to own a merchant account. A merchant account can be said as a contract wherein an acquiring bank, some other financial establishment or even a third party extends a line of credit to a merchant. This is done so that the merchant or the business owner can accept credit card transactions of major credit card brands like MasterCard, Visa or American Express etc.

Nowadays great amount of online payments are done by credit cards. It is an effective tool for the fast functioning of your business enterprise and in majority of online transactions credit card payment is accepted. People like instant payment these days and avoid the trouble of dealing in cash. E-commerce has occupied an important place on web World; people prefer E-commerce over regular shopping.

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If you’re a home-based business owner or a medium-scale entrepreneur it is indispensible to facilitate online payment for your customers. There are certainly large areas of benefits that you can get to enjoy by accepting credit cards.

Getting a merchant accounts

The primary thing that you require to do in order for you to accept credit card payments for your business is make a merchant account. There are three ways that you can go about doing this.

  1. You can set up a merchant account with a bank.
  2. You can set up a merchant account with a third party provider such as PayPal.
  3. You can take the route of opening a merchant account though an independent sales organization.

However if you have an online business, it might be difficult to get approved for a merchant account through a bank, so the second or third option is more suitable for you.

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After setting up a merchant account, you can include shopping cart functionality on your business website so that the credit card payments can be accepted. You can also use a virtual terminal where users need to log on to a third party website for the credit card payment to be processed. Even you can purchase or lease the equipment needed to swipe the cards if you have a physical store. Finally, you can use a service which allows your customers to enter their credit card payments over the phone.


  • Better quality of customer service.
  • Customers can make ‘impulse’ buys which means more profit for you.
  • Your business remains competitive.
  • You can give your customers more choices when it comes to the payment methods that they can use.
  • Increased sales.
  • More credibility and trust earned from your customers.
  • Payments will not bounce as checks do when there is insufficient fund in the account.
  • You will be able to handle your business’ finances more easily and conveniently.
  • This type of option will help improve your cash flow.

There’s certainly no doubt that accepting credit card payments is one of the best ways for you to get ahead in business and generate more profit.

Juan is a Design & Tech Blogger with strong interest in digital art, human computer interaction, enterprise system and system automation.

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