Merchant Accounts



If you don’t take credit card payments, you’ll forfeit sales. Getting started taking credit card payments can be complicated. We’ll break payments down for you in easy to understand pieces.

retail store photo

Photo by Unsplash (Pixabay)

You can begin taking credit card payments and return to business. To get started with credit card payments you require 5 items:

We’ll help you find out about the things below:

You require a merchant account provider.
You require connectivity to the credit card network through your site, smart phone or credit card terminal.
You require a knowledge of how credit cards work and what you need to do to follow credit card rules.
You need to know your sales volume.
You need to know how to shop around for the best deal.

A payment gateway is a service that sends transactions (Most of the time we’re talking about credit cards.) This service submits your customer’s purchase to the credit card network, the customer’s bank and sends an OK or a decline back to you. , if you get an OK you ship your product or hand your product to the customer.. The payment gateway also tells your customer’s bank to put money in your merchant account.

What is a merchant account?

A merchant account holds cash gathered through a payment gateway. This is where you money is until your money is sent to a routine bank account. You’ll get your money in anywhere from 2 days to 2 weeks. The much faster the better of course. A merchant account provider establishes this special account for you, inspects your bona fides, and audits your behavior. Normally the merchant account provider is a bank of some type. What’s great is that the payment gateway already has a merchant account provider connection. You don’t need to find both a payment gateway and a merchant account provider. You can just pick a payment gateway.

Credit Card Network: Website, Smartphone, or Credit Card Terminal

There are various methods to accept credit card payments. If you want to use your website, iPhone or iPad or a credit card terminal, you’ll need to decide. If you’re a retail business in a fixed location such as a restaurant, cafe, car repair shop, tatoo parlor and etc. you’ll use a credit card terminal. If you’re a business that’s mobile such as a kiosk in a mall, farmer market merchant, or running some sort of pop-up retail operation, you’ll want to consider accepting credit card payments on a mobile device. You’ll get your customer to input their credit card information into a website if you sell online.

What are the rules you need to follow?


When your customer asks for a refund you should provide it. You should put your refund policy clearly on your website. You can do something like full refunds within 30 days. Or full refunds within 30 days no questions asked. Generally, showing a refund policy is also a good sales tool.


When your customer does not like the purchase they made, chargebacks are. They complain to their bank. Their bank sends the complaint to your payment gateway. Your payment gateway contacts you and charges you a fee. What is the charge for? The charge is a processing charge as the payment gateway will fight the dispute on your behalf. You need to respond to the chargeback disputes in a sensible timeframe.


You need to keep your customer’s credit card information secure and follow PCI DSS regulations. There easy ways to do this such as using tools provided by your payment gateway.

Sales Volume

When we speak with payment processors, their first concern is “What is your sales volume?” , if you’re just getting started as a business you can provide a forecast of sorts.. Typically, you don’t want to share your volume because the lower the volume the more the payment processor will charge you. You can’t help this when you’re just starting out so provide a forecast. , if you are an established business you don’t need to provide the precise volume.. You should also use a projection that shows growth over time. Give a projection for volume 12 or 24 months in advance.

You Should Know How you can Shop Around

Shopping around is very important in buying anything. When it comes to payment processing it’s super important. You don’t want to pay too much. You want features that are available. You want to get support. You require to search around for a number of different payment processors. You can use our recommend list.