Making payments through credit cards is something third party merchant accounts provide. Though these customized accounts are not exactly like real merchant accounts but they do serve the merchant the same way. Before starting with third party services, it is important to understand the way they work. You must know that though you are the one who owns the services and products but when it comes to selling, it is the third party doing it. In other words, you act as a supplier and drop shipper.
Third party account Vs regular merchant account
· The first difference among the two is that here, i.e. in third party, funds are processed via a large bank account followed by discretion to the individual merchants. Clearing and settling transaction this way, escapes the rules designed by federal & state bank regulations besides MasterCard and Visa. These reasons put such accounts into challenging situations from state banking regulators.
· Second difference is that here, customers are kept away from the shopping cart for some time and ordering takes place in that duration. Generally, third party processor put their logo and brand on the payment page taking away from the professionalism and overall flow of the shopping cart.
· Third and the last difference is that these online merchant account services distribute funds either once a week or once a month.
Getting started with these online merchant services is very easy. Less personal details are required and acceptance criteria is not strict. Fee charged is also less, which is very helpful for smaller businesses.
Such services have higher discount and transaction fees. Customers find it difficult to trust such agents, as they have negligible information about them.
Suitable for your business or not?
Read More : https://paycronn.wordpress.com/2016/05/10/merchant-service-accounts-and-its-importance/