The difference between a third party processor and a merchant account provider

The third-party processor and the merchant account providers share the same basic function, aimed at transferring the customer to the retailer. To understand more about their difference, it is essential fully to understand their definitions.

What is a third-party processor

It is a network of e-commerce merchants a direct merchant account share. During the purchase of an item, the third-party processor transfers funds directly from your credit card to resellers Bank. The responsibility is on the Bank itself. This service is recommended for the following circumstances:

Starters or non-registered business

No monthly fees, maintain and one can easily without obligations that mean less worry.

Black lists

People who do not receive an account due to poor business record can it as under the dealer name and not theirs, a third-party service is ready.

High risk

Business through online transactions is a very risky practice. Fraudulent use of cards a preventable risk is a third party is facing. However, all these issues from the third-party processor are shoulders, that is, why they later free of charge to cover the costs of the risk.

If not in a position to get a merchant account

Because it is difficult to acquire one, hire a third-party processor the best solution if make personal purchases. You must continuously use only to the rules with their existing rules to their services.

What is a merchant account provider

It is the intermediary between the credit card companies and retailers. Simplifies the transfer of funds, the handling of all services and transactions. This type of service provider has a more monthly and other charges but with a lower per-transaction fee.

Although both have something in common, they differ in the method of transmission, rates, and security. The following are the main differences:

Purchase of services

Third-party can be added to large number of new products in their systems with less effort compared to one of the providers that require several documentation and verification of accounts.

Risk of loss

The reason why they can charge a lower fee the Bank assumes full responsibility for the services covered and this is not the third. To ensure safety, merchant account providers a personal transaction of the business want to, have Therefore is more rapport between the customer and the account provider.

Competition

Because there are many providers, must continue to make it a compelling offer to the customers satisfied. You play to with their rates of discount rates, to start-up fees, monthly fees just to finish with the fierce competition.

Regardless of the type of e-commerce service, it is important, choose a provider that helps you to maximize your profit. Decide wisely and leave themselves not only to the cheaper rates offered, because the quality of service, not the costs most is what matters.

For more information about Merchant account , please go to: http://www.takecardstoday.com/

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