Online business uses internet for the launch of businesses. Once web site is ready there is a need of proper marketing. Once its properly advertised, customers start using it. In order to buy or sell products to the internet users, internet merchant accounts are established. Every business has its own characteristics, especially with relation to the risk profile it presents. As such, every individual business needs to have a unique merchant account to facilitate receiving online payments through credit cards and e-checks.
An internet merchant account is an account that enables merchants to do all the payment transaction online using credit cards. They can be obtained through a bank, credit card Company, or other payment processor. Any merchant who wants to take credit card orders must establish an internet merchant account.
Internet merchant accounts are similar to mail order- telephone order (MOTO) accounts; here the transactions are done through internet. It is a virtual gateway to process credit card payments. Bank merchant accounts provide credit card processing for the majority of web sites today. These are internet merchant accounts are set up through regular banks.
Work flow of internet merchant accounts is customer views the websites by checking out the shopping card list.Internet merchant account authorizes the customers credit card, in order to verify whether there is any fraud activity or not .this process takes place in few sec. After the purchase authorization, product is supplied to the customer using downlink in case of downloadable digital product e.g. e-books After few days the banks transfer the transaction fees in to internet merchant account.
Advantages of using internet merchant accounts:
• Fees are usually low internet merchant accounts are generally more trusted by customers for on-line payment services.
• Enhanced trust encourages more sales.
• Internet merchant accounts offer greater flexibility to the merchant
• Main task is to capture, secure, and communicate the credit card and billing information to the bank credit card authorization systems. Lets look at this process in more detail.
Disadvantages of merchant accounts:
• They have stringent personal business credit requirements. .
• It takes a while to get your account approved and set up.