Merchant Bank

A Merchant account is a "bank account" established with a payment processor for conducting credit / debit card transactions. Any merchant who wants to take payments through credit / debit card, must establish a merchant account. Merchant account processing services are usually provided by a bank or a third party processor to the merchant. These services include authorization of credit cards, transfer of funds through the financial institutions (Master Card/Visa),depositing of funds to checking accounts, merchant billing, and account activity reporting.

In credit card transactions, the business provides the merchant bank with a sales slip (draft) representing the customer's credit card information and signature authorizing the charge.

The bank then transfers this amount into the business's merchant account.The business may then draw from that amount or transfer the money to other accounts. The merchant bank then contacts the issuer of the customer's credit card (issuing bank), presents the sales draft and requests reimbursement.

The card-issuing bank then bills the customer for the purchase. If the customer returns the purchased item or challenges the charge, a "charge-back" results and the issuing bank credits the customer's account and asks the merchant bank for a refund.

The merchant bank is then only entitled to recoup its loss from the "business", not the credit card customer. If the business refuses, lacks sufficient funds,or is no longer functioning, the merchant bank absorbs the loss.

Card processing solutions enable businesses to accept credit cards, debit cards, electronic checks, gift cards, and other payment options.

Advantages for merchant clients:

Expand your customers' payment options
Simplify your business operations
Increase revenue with Merchant Card Processing

With this type of service, the customer is passed smoothly from your web site on to a secure server at point of payment. The secure payment provider takes the details, runs some checks on the card, and confirms the order. You receive the order, and your bank the payment via the secure payment service.

By accepting online payments you can move money from the buyer's account to the seller's account.

Software processing helps reduce fraud losses, saves you time and money, and provides powerful features and performance, including detailed transaction records and reports. These are features that stand alone terminals can not provide.

Growth in business

Having online payment can help you:

Reach new customers who want the convenience of paying with credit or debit cards.
Accept payments over the phone and sell to customers who can not visit the business directly.
Accept all major credit and debit cards.

For currency conversion, see Express Currency Conversion