With almost three quarters of all high street spending now made by as secure payments by credit or debit card, it’s clear that if your business doesn’t have a method of accepting non-cash payment you’re at a distinct disadvantage to your competitors.
Contactless technology is set to take a bigger slice of the small transaction market on the High Street, and secure payments online are likely to see a growth in the average transaction size over the next ten years.
How online secure payments work
To accept online payment, your business will first need an eCommerce enabled website with an online shopping cart.
Your customer’s payment details – card number, security number, address, and so on – are transferred to a merchant account via a payment gateway. It is the payment gateway that verifies the cardholder details and confirms funds are available for the transaction top proceed.
Once the details have been passed through to the merchant account at an acquiring bank, the card will be authorised and stored for a fixed period until they are released through to your business account.
What will you receive?
The merchant account acts as a middleman between you and your customer. Effectively they provide an extra layer of security to your business and the customer. They check that funds are available in the customer account before debiting and then crediting into your merchant account.
For undertaking this process the merchant service will charge a fee, usually by way of a percentage of the transaction value, which will be debited from the amount credited into your business account. Your business account is normally credited two to three days after receipt of funds into the merchant account.
How to choose your merchant account
When selecting a merchant account, the choice can be bewildering. Considerations will include:
- Experience in your type of business
- Fees and costs levied on transactions
- Ability to transact with your chosen payment gateway
- Customer service capabilities
If all this sounds confusing, it doesn’t have to be. Feel free to contact North Payments today, and one of our dedicated account professionals will be happy to discuss your requirements and help you to find the best Merchant Account for your business.