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Bank Merchant Accounts
![*]() If you have a bricks and
mortar business and want to sell online, it is recommended
that you go to your current bank for an Internet merchant
account because you already have an established relationship
with them.
Since your current bank has access to your existing accounts
and financial information, the application process may proceed
faster and the likelihood of securing an account is increased.
If you acquire your Internet merchant account through a bank
that you do not normally do business with, ensure that your
Internet merchant bank can transfer funds to your regular
bank.
Most people use their local bank to set up the account. So
when you're ready to open a merchant account, the best place
to start is with your local bank. If your business is less
than 2 years old, you still should be able to establish a
merchant account, provided you have a history, either business
or personal, with that institution.
Banks offer security, reliability and stability, but they
are more selective when opening Internet merchant accounts.
ISOs tend to be more flexible towards riskier businesses,
such as online casinos or adult sites, but they will generally
charge more for accepting this risk. Also, they are not as
regulated as banks and therefore may not be as dependable.
Consequently, you should only go to an ISO if you have been
turned away from your bank.
Once you open a merchant account, the bank arranges a third-party
processor to set up a mechanism for accepting credit card
payments. The merchant downloads this software directly from
CyberCash, and is given the option to buy the software or
lease it on a monthly basis. This is typical of many bank
merchant account arrangements.
The time and involvement that may be required for software
or equipment installation is something that you need to keep
in mind. You may wish instead to choose another provider type
that consolidates this process.
Also, banks usually have stricter chargeback policies than
ISOs. Chargebacks include disputed charges and fraudulent
charges. Banks tend to shut down merchant accounts as a result
of chargebacks without first working with the merchant to
reduce the chargebacks. ISOs usually will offer advice and
customer support to the merchant before they terminate an
account.
If you have problems to get merchant account through your
local bank - There are many companies that offer merchant
accounts on the Internet. Their prices are quite reasonable.
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