Kinds of Merchant Accounts Explained
It is necessary to understand the diverse kinds of Merchant Accounts for a better understanding. In the payment processing industry, every dealer is categorized into a definite “merchant account kind” category, on the basis of how they collect info associated with the card and undertake dealings. To learn which class your business is categorized under, we have well-defined the features of every merchant account type in this article.
Different sorts of Merchant Accounts
There are two foremost merchant account kind categories, one is “Swiped” and the other is “Keyed,” which reveal the basic techniques used to arrest card info. Within these chief categories are located sub-categories and then broken down as per the business setting and processing method.
Swiped or Card Present- Here merchants directly interact with their customers face-to-face and capture card information by physically swiping cards through a terminal or point-of-sale method. The sub-categories in this group include:
Retail Merchants- This sort of Merchant Account is the one where trade is conducted in a storefront or workplace where they communicate with their clients face-to-face besides physically swipe cards via a terminal or by the Point-of-Sale method.
Restaurant Merchants- Here, require the aptitude to add instructions to their fees (Note: Eateries that do not process instructions are still undertaking “Retail” merchants in this business). Using an unusual tip, they approve a client’s card for a particular sale amount besides then settle that approval with a familiar price to include the tip sum.
Wireless or Mobile Merchants- This kind of Merchant Account accepts and approves cards where they are situated, which is commonly on the street. Using a movable wireless terminal, these dealers process on-site, actual-time dealings at their clients’ places.
Lodging Merchants: “Lodging” merchants approve a client’s card for an exact sale amount besides, depending on the client’s duration of stay, will regulate and resolve out that approval, a day or more afterward to include extra fees such as levies, etc.
Keyed or Card-Not-Present- Here wholesalers indirectly gather their customers’ card info, which depends on the business setting and type of technology used, can process dealings in many ways. The sub-categories in this group consist of:
Keyed Face-to-Face Merchants-These sorts of traders ultimately meet their clients in person to carry the stuff or offer the facility, but they don’t really gather card info with the client or card present. Usually, they avail orders over the phone, mail, email, fax or the Internet, then physically key-enter card info into a terminal, payment gateway, or any other point-of-sale method.
Internet or E-Commerce Merchants- This type of Merchant Account conducts all trade through a web, so all card info is collected besides dealings are processed online, in actual-time, using a payment gateway system that’s made into their site’s shopping cart. Thus, once the sale is approved, the card is charged promptly and the stuff is shipped for future supply. (Note: This merchant kind does not relate to trades that simply market on the net, but do not directly process pay via their webs, upon order approval.)
Mail Order/Telephone Order or (M.O.T.O.) Merchants- Here the merchants rarely, if ever, meet their customers face-to-face. Instead, these merchants collect orders and card information over the telephone, by mail, fax, or via the Internet, and manually key-enter transactions through a terminal, software, payment gateway, or point-of-sale system. Once imbursement for product-order is established, the stuff is shipped for forthcoming delivery.
IVR or Internet Voice Response
“Interactive voice response, or known as IVR, is an electronic phone method that allows a person, normally a telephone caller, to make choice from a voice list of options. The choice is made by means of touch phone keypad passes or voice replies. The phone method plays pre-recorded voice prompts and the individual normally presses a number on a phone keypad to choose the preference related with the voice prompt.