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Dropship Mysteries: What Is A Merchant Account? ECommerce Articles | July 8 Shayne Gostisbehere North America Jersey , 2010 Are you interested in setting up your own online business as a dropship reseller? Check out this article on merchant accounts and find out why they're important for dropship resellers.
Have you ever shopped online where you had to put in your credit or debit card information to complete the transaction?
These online shopping accounts make use of merchant accounts so that payments via debit and credit cards are accepted.
It is nothing but a kind of bank account that gives businesses the authority to accept payment via either a debit or credit card.
It is an agreement made between the retailer, merchant and the payment processor so that the transactions either with debit card or credit card are settled.
Businesses that allow for payments via debit or credit cards online are bound to attract more customers and business than the ones that do not.
It has become increasingly important for online businesses to have merchant accounts with some of the most common banking systems so that their products can be sold all over the world. ? Paying via debit and credit cards online is also a very comfortable way for resellers and dropshippers to handle their business.
With a merchant account set up they are sure that the money will come to them and not go anywhere else.
Business owners have a lot of opportunities when they allow for payment of products via credit or debit cards on their ecommerce sites.
This is because consumers these days prefer to use credit or debit cards rather than carrying cash with them.
According to statistics the number of credit cards that are in circulation in the US alone is 576.4 million, while the average number of credit cards held by a person is 3. This is a huge number to tap.
?When dropshippers and resellers decide to have a merchant account there are a lot of considerations they need to make.
This is because not all merchant accounts are given to small businesses Morgan Rielly North America Jersey , home business or even mail order. It is therefore important to choose the right one.
-If it?s a small business then most merchants will not let you open a direct account with them. You will have to go thorough a third party provider to secure an account. In this case you might have to pay higher fees. -When choosing a merchant account, you need to make sure that the shopping cart that is on your website needs to have an interface with the merchant?s gateway. This will ensure that the shopping cart will work with that particular merchant account. -You also need to check the charges, most merchants charge a fee for per item sold Ryan Murray North America Jersey , or there is one time fee charged for using their service. -You also need to check for discount rates offered by these merchant account providers. -You also need to make sure that you have a good credit rating, since most merchants do not allow you to open a merchant account if your credit rating is poor. -Setting up a merchant account will also require you to fill in the application process. Only after approval your merchant account is setup. -Resellers and dropshippers need to check for the right merchant account so that they can benefit from the account by not paying too much on transaction fees etc. -It is also important that they evaluate several merchant account providers; this will help them earn a higher profit in the near future.
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