What Is Merchant Account, and Where to Open Business Account?
- 02 Mar 2022
Hi all! A few years ago before opening a business we faced a problem – the choice of a bank to open a merchant account. We have read a lot of information about the need for such an online account, about the advantages, and we are ready to share our experience with you. If you are just planning to start a business (especially online, where a bank account is a necessity), we advise you to start thinking about opening a business account. In our material, you will learn the most important things about the merchant account, and understand its necessity from the first day of existence of your business.
Definition of a Merchant Account
So, a merchant account is an intermediary online account between your business account and your customer's account. When you buy and sell online, you can't do without the use of debit and credit cards, and the merchant account helps to process these cards. In other words, this online account processes electronic payments. The same happens with returns and chargebacks.
• Our tip!
When choosing the best payment gateway, pay attention to the MaxPay account, because it is a leader in EU and USA markets. MaxPay accepts and processes payments in EUR and USD. By opening the https://maxpay.com/ account you'll improve and speed up the payment process for your goods and services. Trust us, you'll make your customers happy.
H3: Merchant Account: How Does It Work?
1. You have a website where you sell your services. The customer goes to the website, decides to buy your product or service, and clicks to buy.
2. The customer is being redirected to a payment gateway page, where he enters all the necessary credentials and finalizes the payment process.
3. At this point, the payment gate sends his details to your merchant account. This is where it verifies all the information and confirms that the client has sufficient funds.
4. If all is well, the bank transfer money to your online account. If there are problems, then the customer will be informed and asked to go through the payment process again.
Where to Open Business Account?
The first thing entrepreneurs think about before opening a business account is local banks. But we are happy to tell you that today there are many more solutions for creating an account for your business. You can open an account and link it to your eWallet at online financial institutions, which are licensed by national banks. If you have an eWallet, you can also accept payments in cryptocurrencies.
Wherever you want to open such an online account, in a bank or an e-money institution, you should pay attention to the following:
• the cost of opening and maintaining an account. Usually, it is made up of account maintenance fees, fees for bank transactions (cash deposits and withdrawals, transfers, acquiring), and additional services, such as SMS-informing;
• the speed of operations - payments must be executed as quickly as possible, and the support service must always be in touch. Of course, you should understand that bank transfer money within 4 business days, but the payment gateway should proceed much faster;
• the reliability of the bank is an important point since you are entrusting them with your hard-earned money.