Benefits of a Secure Internet Merchant Account

Internet merchant accounts are a must for online businesses to process credit card transactions. Such accounts are a bit different from a regular account for a bricks-and-mortar retail store. The payment gateway actually transmits the billing information to the internet merchant account provider.

With an Internet merchant account, online customers could pay with their credit card by entering their credit card number and associated information directly into a form on the website. So traders can accept credit card orders without requiring the customer fax, mail or telephone numbers with their credit card payment information.

The nature of transactions is different from face to face transactions where a signature is required to authorize the purchase. This makes online transactions prone to credit card fraud. Protection from any fraud should be one of your primary considerations when choosing an internet merchant account provider. Online card payments are classed as ‘card-not-present’ transactions, because you can’t physically check the card or the cardholder. If a transaction proves to be fraudulent, the money will be reclaimed from your bank account - this is known as a chargeback. Even if a cardholder-not-present transaction is authorized by the cardholder’s bank, this doesn’t necessarily guarantee payment.

To help guard against fraud, where a cardholder claims that they did not authorize a payment, check to see if your online payment card processor can offer the card scheme’s authentication service - MasterCard Secure Code and Verified by Visa.

Having a proper, secure internet merchant account gives an aura of prestige and legitimacy to any business - no ‘fly-by-night’ payment arrangements designed to avoid the clearance and approval process that is required in order to be approved for an account.

The internet merchant account makes everything smooth and hassle free for customers. In addition, it adds in your goodwill. Your business looks good, you are able to ship faster, your customer receives his goods more quickly, and you both have a paper trail to simplify accounting…the advantages are obvious.