Merchant Accounts: Various Types.

Merchant account is the account opened through a bank that is a member of the Visa, MasterCard, or other credit card network which allows merchants to accept credit cards from purchasers. Retail Merchants are the consumer that goes to merchant's place of business, chooses goods and/or services, and gives the merchant his/her credit card for credit card authorization. Merchant swipes the card on the credit card processing terminal and the credit card machine dials the acquiring processor for credit card authentication. Acquiring processor sends credit card transaction to card association, which in turn sends the request for credit card authorization to the issuing bank. Issuing bank accepts or declines the credit card transaction and sends message to the card association. The card association contacts the credit card processor with the credit card authorization, and then the request to deliver goods and services is given to the merchant by way of the POS terminal. Merchant sends the credit card processing company fulfillment notification to permit settlement meaning that the goods and services have been delivered or are ready to be shipped. The capture takes place when the credit card authorization information is given to the issuing bank and the consumer's credit card is charged for goods and services requested/received. This entire process takes place in less than ten seconds. Finally, when the merchant decides to settle batch, the acquiring processor finalizes the credit card transaction with the issuing bank and they transfer money into the merchant's bank. Mail-Order/Telephone Merchants instead of swiping the credit card through the credit card machine, key in the information into the credit card machine. If the merchant prefers to use software for credit card authorization, then this can be done using a virtual terminal. A virtual terminal will allow the merchant to process credit cards over the Internet by logging on to the secure socket of the gateway provider and inputting the credit card processing criteria manually. Online Merchants are the consumer that goes to a web site, chooses goods and/or services, and fills out the merchant commerce application. Consumer enters credit card information into a secured form that is sent over the Internet via Real Time Online Processing software, which then sends the encrypted transaction to the acquiring processor for credit card authorization. Acquiring processor sends transaction to card association, which in turn sends the request for credit card authorization to the issuing bank. Issuing bank accepts or declines the credit card transaction and sends message to the card association. The card association contacts the credit card processor with the credit card authorization, and then the request to deliver goods and services is given to the merchant by way of the online credit card processing software. Merchant sends the credit card processing company fulfillment notification to permit settlement meaning that the goods and services have been delivered or are ready to be shipped. The capture takes place when the credit card authorization information is given to the issuing bank and the consumer's credit card is charged for goods and services requested/received. The entire process takes place in less than ten seconds. Finally, when the merchant decides to settle batch, the acquiring processor finalizes the credit card transaction with the issuing bank and they transfer money into the merchant's bank.