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What is a Merchant Account?

A merchant account is virtual bank account that holds money from credit and debit card sales.  The merchant account is linked to your business bank account and money is normally transferred out on a daily or weekly basis. Any company that wants to accept credit cards must establish a merchant account.  Merchants wanting to accept payments from websites are required to apply for an Internet Merchant Account.

Why do you need a merchant account?

If you’re building a typical ecommerce business, you’ll need a merchant account in order to process credit and debit card payments. PayPal would be another option but many customers might not have a PayPal account and this could lead to drop off.  Also, cost for PayPal services in South Africa are around 5% per transaction which is expensive.

Here are a few key advantages to having your own merchant account.

  • Offers you the lowest merchant commission rate.
  • Your funds are managed and paid to you by the bank – Trusted
  • Your funds are normally paid to you next day.
  • None of your funds are held back as reserves.
  • You can link your merchant account to any business bank account.

 

Why don’t I deal directly with the Bank?

Considering how many businesses and merchants are in the market, one would think that the process of applying for a merchant account with a bank would be seamless by now – this is NOT the case…   Obtaining a merchant account can be a long and tedious process that can be highly frustrating and costly.

This is where Swift Merchant Services comes in to the picture.

  • We speed up the merchant account signup process
  • We are experts in merchant services and drive the process for you.
  • We do not work for the bank – We are independent.
  • We work hard to get you the best merchant rates – saving you money
  • We understand ecommerce and can help to get your business model approved

Are there different types of merchant accounts?

There are different types of merchant accounts.  It is important that we understand your business model so that the correct merchant account type is applied for.

Here are some examples:

  • Internet Merchant Account – This is used to accept credit card payments from your website or application.
  • Internet Merchant Account / 3D Secure – 3D Secure, also known has MasterCard Secure Code & Verified by Visa, requires that the card holder enter a secure PIN before the payment is processed to the bank.  This helps to reduce fraudulent transactions.
  • Recurring Merchant Account – This is used to process recurring payments.  Recurring Payments are generally used for subscription based collections.
  • Mail Order / Telephone Order (MOTO) – This is for merchants that need to manually process credit card transactions. This is a great solution for call centres that require agents to accept payments over the phone.
  • Speed Point – A speed point merchant account is used to process credit and debit cards from a physical device.
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About Merchant Accounts

What is a Merchant Account? A merchant account is virtual bank account that holds money from credit and debit card sales.  The merchant account is linked to your business bank account and money is normally transferred out on a daily or weekly basis. Any company that wants to accept credit cards must establish a merchant[…..]