When a merchant is entering the world of online business, he or she should became aware of the responsibilities owed by an account provider. A merchant account provider is under certain obligations to provide services that are outlined in the contractual agreement between the merchant and provider. If there is ever a failure to meet these obligations, then a merchant may have legal recourse. Here are some of the common responsibilities that merchant account providers owe to merchants.
Successfully Transfer Funds
The most important responsibility that is owed by a merchant account provider is to transfer funds from a purchaser’s credit card account to a merchant’s business bank account. When a merchant is seeking to open a new merchant account, he or she should make sure that a merchant account provider has a reputation for successfully transferring funds. It is important for merchants to read reviews of other merchants to gauge the experiences that they have had in the transfer of funds.
Establish Credit Terms
A merchant account provider also works with credit card companies to establish credit terms for various types of credit cards. These credit terms will usually involve the payment schedule and any fees owes to the credit card company. The merchant account provider also negotiates an agreement with the credit card company to handle unanticipated events, such as the return of a product by a customer.
Accept Credit Card Types
When a merchant seeks to work with a new account provider, it is important to make sure that the account provider accepts all of the credit cards that a merchant requires. A merchant should ensure that these credit cards are accepted prior to signing an agreement with a merchant account provider.
Transparency
Every merchant account provider has a duty to engage in transparent transactions for a merchant. The merchant should ensure that a merchant account provider actually has a firm commitment to transparency. The merchant may wish to research the number of statements that an account provider will issue in a month. In addition, a merchant may wish to see whether an account provider charges an additional fee for reports that are sent out on a monthly basis. Some account providers do charge a fee for this service.
Before a merchant decides to work with an account provider, he or she should ensure that an account provider can uphold these duties. Doing one’s due diligence will ensure that he or she hires an excellent account provider.