Internet Merchant Account

Internet merchant accounts are fast becoming the most popular accounts due to the e-commerce boom. Internet merchant accounts are also being utilized by business that require portability and easy access.

Internet Account Qualifications

Internet merchant accounts are most commonly utilized by web-based e-commerce businesses, but may also be used by other business types. Unlike a retail merchant account where a business is expected to have a credit card present at the point of sale, an Internet merchant account is a card not present account (CNP). An Internet merchant account is considered a relatively high risk account and will carry rates and fees that are higher than those of retail, lodging, and grocery accounts. It is this higher risk that would allow a retail business to downgrade their account to an Internet account, but would prevent an Internet business from upgrading their account to a retail account.

Account Guidelines for Internet merchant accounts are more strict due to the higher risk factor associated with the accounts. Many processors will have guidelines that govern if and when a business will be able to obtain an Internet merchant account. Some of the businesses that would be unable to obtain an Internet merchant account fall into the high risk merchant account category and will have to search for a processor that is able to meet their needs. Some processors may also place age restrictions on acceptance where a business must be at least a year old before they are able to obtain an account.

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Internet Rates and Fees

Internet merchant accounts, like mail order merchant accounts (moto) are higher risk than card present accounts (CP). This higher risk is the reason for the higher rates and fees associated with Internet merchant accounts.

Internet merchant accounts are also more likely to require rolling reserves or ACH delays for approval.

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Business Types & Usage

Internet merchant accounts are most popular among e-commerce businesses that utilize a gateway and virtual terminal to process online transactions from a web site. A shopping cart is linked from the web site to the gateway to process real-time transactions and the virtual terminal is used to process mail or phone orders.

A gateway or virtual terminal allows a merchant to process credit card transactions from any computer with Internet access. Laptops with wireless Internet connections have become popular with many small businesses that require portability but cannot afford the up front cost and monthly fees of a true wireless merchant account. By bringing a laptop with Internet capability to craft or trade shows or a new market is quickly discovering the convenience of processing credit card transactions online.

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Account Set-Up

The thought of acquiring an Internet merchant account can be very intimidating to some business owners because of the implied technical know-how that the accounts emulate. In fact, acquiring and using an Internet merchant account is very easy. Linking the gateway to a shopping cart to enable real-time transactions is also something that someone with minimal technical know-how can accomplish. Gateway providers and most processors have customer service available to assist with integration and set-up of an account and gateway.