What is Merchant Service Accounts?

A merchant services account is a specialized account that enables your business to accept credit cards, debit cards, and other types of electronic payment. A merchant services account is established with an organization (generally referred to as a payment processor or a merchant acquirer) that has relationships with the various organizations that allow the processing of electronic payments when your customers want to pay for goods and services.

Dedicated vs aggregate merchant accounts

There are two different types of merchant accounts. A dedicated merchant account is an account set up just for you, the merchant. This is like your very own online bank account set up just for your online business. If you set up an account with a payment gateway like Authorize.net or PayLeap you will also get a dedicated merchant account. With a dedicated merchant account you can often negotiate custom rates for your sales. The rates are based on the volume of sales you process and the types of products you sell.

If you like the idea of having more control over your money and the ability to negotiate custom rates, you may want a dedicated merchant account. To get a dedicated merchant account you and your company will need to go through a fairly in depth credit check and underwriting process. This takes time and involves faxing over bank records and other information about yourself and your business.

An aggregate merchant account is one where your money gets dropped in a pool with a large number of other companies. Stripe and PayPal are examples of services that provide aggregate merchant accounts. You still need to provide some information about your company and the types of products you intend to sell, but the process of getting connected with an aggregate merchant account is far less complicated and faster. The downside is you have a little bit less control over how long it takes to get your money and you generally can’t negotiate the rates.

Contact us to learn more about the right one for you.

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