For merchants that seek to create new merchant accounts, it is important to have an understanding of the requirements for online merchant accounts. Knowing about the requirements for credit card processing online can ensure that a merchant does not mistakenly engage in fraud and makes all necessary reports to a managing bank. Here are some of the requirements that a merchant should consider for an online merchant account.
Privacy Policy & Return Policy
Under U.S. regulations and laws, merchants must provide a privacy policy and return policy when they process payments online. Other information also must be included on a website. A merchant must provide a website page that lists all of the different shipping options that are available for customers. There must be shopping cart software that is used on the website and provides customers with easy access to a shopping card. In addition, all products listed on a merchant’s website must have a clear image and price listed next to the image.
HTML Scripts
When a merchant is approved to do credit card processing through his or her website, then a bank will provide HTML scripts that can be plugged into the website. These HTML scripts must be plugged into the website, otherwise customers will have no way to use credit cards for transactions in order to buy products or services from a merchant.
Commission Fees
Some banks will require that merchants pay a monthly fee for credit card processing, and others will require that merchants pay a commission-based fee. Merchants should take the time to understand the payment fee structure for a bank ahead of time. The typical commission-based fee will range from one to three percent of all of the transactions that are completed through a merchant’s account.
Other Considerations
If a merchant aspires to open an online merchant account, then he or she should ensure that the account is used online with a solid wireless Internet connection. It is important for merchants to be able to access an online merchant account at any time.
Merchants may also want to consider “pay-on-the-go” options. These options can allow merchants to accept credit cards from customers at any time and in any place. A merchant will typically use a credit card processor that is on his or her mobile phone in order to complete this type of transaction. There is typically no connection fee to use this type of credit card processor.