Monday, July 23, 2018

The difference between retail & MOTO/eCommerce accounts


Claudia Mosley, CFO of Merchant Processing Solutions Inc. 
explains the difference between merchant account types. 

It is important to understand your business model and payment type. Many unscrupulous merchant services companies purposely set up their merchants on the wrong type of account to get more fees from them! SHAMEFUL!!

A Retail Merchant Account is a business that will be processing the majority of their sales with the customer's card present. This can be via a “swipe” transaction or "tap" contactless payment system (like ApplePay). This does not mean that you cannot take the occasional credit card over the phone but if you do, you will pay an additional "card-not-present" penalty of about .30% (30 basis points ) on top of the card rate. This can lead to a lot of extra fees if you are actually taking many cards over the phone!

An eCommerce Merchant Account is a business that will not have the credit card present for the transaction. It will be processed over the phone, on a website, via a software point of sale, an invoice or a mobile app. These transactions do not allow the merchant to verify the identity of the payee, therefore it is more vulnerable to fraud and consequently; chargebacks! However, when this type of account is set up right at the beginning by an honest merchant services company, there are no penalties and the rates are quite competitive with retail rates!

Merchant Processing Solutions Inc. works with not only the business type but looks at the equipment solution the merchant is wanting to implement to come up with the best solution to fit that business's needs and budget! 

If you think you may be paying more for your merchant services or maybe set up incorrectly, please don't wait! Call today: 954-938-2420



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