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.