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Merchant account

Merchant account

MERCHANT ACCOUNT

If you are doing business on the Internet, then you definitely need a merchant account, moreover, it would be better to have a few of them. Using merchant account allows buyers to make purchases from your site using bank plastic cards, which greatly simplifies the purchase procedure for the buyer, and creates convenience of sales for the company.

Eternity Law International offers to open a merchant account in more than 30 banking institutions, as well as in 23 non-bank financial institutions around the world. The choice of merchant account will depend upon the type of activity of your company, as well as the countries and banking institutions from which you want to receive payments.

The cost of opening merchant account varies from 200 USD, depending on the complexity of issuing merchant.

Merchant account is a mechanism by which buyers can pay for goods or services directly on your website using plastic cards. Merchant account will help you significantly to increase sales on the Internet. Payment can be made using POS terminals, through the seller’s website, via e-mail.

Connection of merchant account takes within 2-3 days from the moment of submission of all necessary documents, along with a site that meets the criteria of the merchant, as well as the availability of an open settlement account for the company. In some cases, it is possible to open a current account for the company at the same time as opening a merchant account.

When you connect the merchant account, it is assigned with a special identification number in the common electronic payment system, which connects the banks and processing companies in order to promptly execute and process payment transactions.

However, while using the system of merchant accounts, there are certain risks as:

For the client, since the owner of the merchant can take off money from the card after the identification in the system,

Risks for the seller (the owner of the merchant account), since after the purchase, the buyer has the right to withdraw the payment back (in this case, this amount does not return the processing that the payment went to,

Bank — for which the bank accordingly finishes the owner of the merchant account),

Risks for the bank, as it will have to compensate the buyer’s payment to the merchant account holder.

The amounts that are charged off from the buyer’s credit card are credited to the merchant’s account within a few days. A bank, in turn, receives these funds only after the end of the reporting period (usually 1 or 2 times a month).

Thus, conditions are created that make both the bank and the processing companies seriously approach the provision of merchant accounts to customers, and the customers — seriously approach the quality of the products they sell so that there are no refunds.

Now the market for electronic payments is very large:

  • Merchandise USA;
  • Merchants of Great Britain;
  • Merchants of Germany;
  • Merchants of Russia;
  • Merchants of Ukraine;
  • As well as many other countries.

Therefore, it is necessary to select a merchant account based on the individual needs of a particular business.

TYPES OF MERCHANT ACCOUNTS

Depending on the types of activity and the level of repayments, the merchant account can be:

  • High risk — high risk of refunds
  • Low risk — low risk of refunds

The opening of a merchant for high-risk activities will take longer period and will require the provision of additional documents and information.

The higher the risk of your business, the higher the percentage of commission charged by the bank / processing from the payments made.

The degree of risk is assessed individually after a thorough analysis:

  • Company documents;
  • Company website;
  • The type of your activity;
  • Presence of a company bank account;
  • Processing history, if any.

Eternity Law International specialists will provide you with expert advice on opening a merchant account in a suitable jurisdiction.

If you have any questions or need advice on opening a bank or merchant account, call us or write in the CRM form at the bottom of the page.