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E-Commerce:
Credit Cards
Merchant Account: Merchant Account is an industry term meaning
a banking relationship which allows a business to accept credit cards.
Existing businesses that already have an established Merchant Account
with the Bank need to make sure the same Merchant Account is
acceptable for Internet Transactions and also find out the gateways
the bank works with. Smaller businesses that have not yet established
the banking relationships necessary to accept credit cards need to do
so. There are primarily two methods -
 | To have your existing bank setup a merchant account for you:
This usually can be cumbersome especially if the business is very
new. This often involves a lot of paperwork and may require a
substantial deposit with the bank. Especially for Canadian
Businesses this involves dealing with different banks to accept
Visa, Mastercard etc. as one bank cannot offer both Visa and
Mastercard in Canada.
| Merchant Account Providers: UNYGLOBE
works with Merchant
Account Providers who will provide you a merchant account for a
monthly fee. They are usually faster in setting up accounts as the
paperwork and processing is much less. In addition security is
generally handled by the Merchant Account Provider. Certain
factors need to be taken into account however. Among them are
- Rolling Reserve - between 8-10% of your revenue will be
held back for a period of six months. This is instead of the
initial deposit requested by the banks.
- Credit Card Info. - In some cases you will not be allowed
to capture credit card info. All credit card info. will be
handled by the Provider. This is some ways is actually
useful as you do not have to worry about the security aspect
for the cards. The security aspect is handled by the
Providers directly. In addition they have fraud prevention
software in place that will reduce false transactions for
your business.
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