Merchant account opening

The conduct of commercial activities related to Internet sales requires high efficiency and convenience for customers. In order to optimize the process of shopping on the site, the discovery of merchant accounts, and, better, even a few, is simply necessary. This mechanism provides customers with the opportunity to make purchases with the help of bank cards, which will positively affect the process of purchases, and will also make sales much more convenient.

Merchant account: how it works

This term is called an algorithm that allows you to pay for goods or services directly on the site. As the statistics show, the opening of such an account causes a significant increase in sales. You can pay for the purchase directly on the site, using the POS-terminal or using e-mail.
From the moment when the documentation package for opening the merchant account will be submitted, a period of time takes 2-3 days until the beginning of its functioning. Conditions that allow the connection of this service are the compliance of the site with all characteristics inherent in the merchant, as well as the availability of the company’s own open account. If the company does not have a settlement account, but the site fully meets all the criteria for connecting the merchant account, then sometimes it is opened with the merchant.
Once the account is registered, it gets its own number in the worldwide payment system. In this system, companies that deal with processing and banks cooperate, which allows the conduct of payment transactions.

Possible risks from the merchant account setup

Together with obvious advantages, it is necessary to provide for risk situations that may arise in the process of making payments:
• After the buyer ties his card number to his account in the system, the seller will have all the mechanisms for writing off the amounts;
• the buyer has the legal right to cancel payment after it was carried out, and the funds will not be debited from the account of the processing company;
• the owner of the merchant account will be liable for such a penalty in the form of a penalty from the bank, as the reimbursement to the buyer will be made by the bank.
After the amount for the purchase is written off from the client’s account, it will be credited to the account of the merchant only after a few days. And immediately after the end of the reporting period, before the bank, which often is 1 or 2 times a month, funds are transferred to a bank account. This approach creates opportunities for serious cooperation with processing companies and the bank in the course of providing merchant accounts to the entrepreneur.
Registration of such an account is currently possible in the following countries:
• the United States;
• Germany;
• United Kingdom;
• Ukraine;
• Russia;
• as well as in many other countries.
Selection of features merchant account and the country in which it will be posted, occurs solely from the specifics of your business.

Varieties of merchant accounts

Conditional merchants, which are available for opening, can be divided into two types relative to the type of commercial activity:
• high risk of a return on funds;
• low risk of a return of payment means.
The percentage of risks associated with providing a merchant account to a specific type of business is directly proportional to the commission fees that will be charged by the bank or processing from every payment that passes through the system.
The risk in the provision of merchant account is evaluated based on the following parameters:
• type of commercial activity;
• a package of documents provided by the entrepreneur;
• data on the website where sales are conducted;
• availability of a bank account, which is assigned to the company.
The company Hadjivangeli & Partners will provide you advice on registering your own merchant account and will answer all your questions.