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Industry News

Back to basics with merchant accounts

By Pivotal Payments

20/08/2009 - Many stores know that accepting credit cards is a critical business move, as it widens the merchant's potential client base and boosts sales.

Yet many businesses are intimated by the process and their lack of understanding about the merchant account process, a relatively simple step toward accepting payment cards.

Credit card processing requires a merchant account - which is an agreement between the store or merchant, a bank and a payment processor - that allows the business to process credit cards. It typically comes with some small fees - while the credit card fees are set by the credit card lending bank such as Visa or MasterCard, the debit card fees typically vary among payment processing providers, so businesses are encouraged to shop around for the best rates.

Applying for a merchant account is similar to applying for a business loan, and requires proper documentation and approval. Businesses should prepare their financial paperwork in advance to speed up the process.

If there is still lingering confusion, many payment processing providers offer trials, demos and other resources for helping to understand the process and the decision. ADNFCR-2514-ID-19323642-ADNFCR

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