An account obtained from a merchant acquiring bank, known as a merchant account, permits the holder to accept online monetary transactions and process card payments. There are three main types of merchant accounts: international merchant account, travel merchant account and forex merchant account.
Scope and features of a merchant account
A merchant account allows the retailer to process online payment transactions for goods and services from their customers. Under some merchant agreements, a third party known as a payment processor can be party to the agreement in order to facilitate the process.
There are three main types of merchant accounts that are acquired by business entities and retailers:
- International merchant account: an account which authorizes and facilitates online merchants to transact payments from clients on a global basis. This type of account is most favored by online businesses as it enables payment processing from one country to another.
- Travel merchant account: an account which is used by travel companies to process monetary transactions. Travel accounts which use card present processing transactions require verification of card name, passport name check, signature and PIN number, thus making this type of travel merchant account relatively low in risk.
- Forex merchant accounts: accounts used to process transactions by Forex brokerage firms. Forex merchant accounts enable forex traders to fund their trading accounts online. Depending on the type of license the Forex brokerage owns, this will affect the scope of transactions application via the forex merchant account.
Individuals and companies that wish to attain a merchant account and accept online payment solutions from their clients are advised to seek the assistance of a professional consultancy firm. Through the advice of knowledgeable consultants, you are able to ensure that the account is obtained in a professional and timely manner.