Advantages of Credit Card Merchant Accounts

These days at least twenty percent of all purchases by consumers are made through credit cards. This percentage is growing steadily from year to year. Many people are finding it more convenient to carry their credit cards with them when they go out shopping than carrying a billfold full of dollars. Also credit cards are useful when people make impulsive purchases when they find a good deal while shopping. Thus it is important for merchants to be able to accept payments through credit cards or debit cards. Having a credit card merchant account enables a merchant to accept payment by credit or debit cards instead of cash.

The other non cash payment alternative of accepting payment by check is not preferred by most merchants as checks may bounce. Earlier many merchants were hesitant to accept credit cards because of the hassle of collecting the receipts and sending them to the credit card company like Visa or Mastercard. However with the rapid advancement of technology every thing is done instantaneously and the money is in the merchant's bank account immediately. Technology has simplified the process to such an extent that many merchants find it more convenient than handling cash.

There are two types of credit card merchant accounts, card present and MOTO. In the card present system the card has to be presented for the payment to be made. The card is swiped through a credit card terminal or some such appliance that can 'read' the card. Once the terminal validates the card the customer simply has to sign the receipt for the sale to be completed. MOTO stands for 'Mail Order Telephone Order'. This means that the card information is sent by telephone or mail and the card is not physically presented. This type of merchant account is less prevalent. It is preferred by mail order businesses.