Merchant Account FAQ

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What is a merchant account?
Why is it that the rates are higher for Mail and Telephone, and Internet order transactions?
So, how long do I have to wait to get setup with a credit card processing merchant account?
Is it cheaper to “Purchase” or “Lease” your merchant equipment?
Am I allowed to use someone else’s merchant account to process my transactions?
Which types of processing solutions can I select from?
At what time will I be able to access my merchant funds?
What does the term “Chargeback” mean?

1. Question: What is a merchant account? Answer: Easy, a merchant account is an account you have at a financial institution that gives you the ability to accept credit cards or debit cards from your customers. There are many different merchant account providers available. Click here to search our online price guide to compare Discount Merchant Brokers rates with industry rates FREE! Or compare for yourself using your favorite search engine.
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2. Question: Why is it that the rates are higher for Mail and Telephone, and Internet order transactions? Answer: Well, face-to-face transactions where the customer swipes their credit card is rated less of a risk by banks. Considering that’s how the banks work, your rates will be lower as the occurrence of fraud or charge-backs are a lot less likely.
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3. Question: So, how long do I have to wait to get setup with a credit card processing merchant account? Answer: This can vary from business to business depending on size and risk of the merchant account, generally most merchant account processors take up to two weeks. Another factor that delays the account approval time is the number of applications that bank is currently reviewing for approval. Furthermore, large volume accounts and big ticketed items will take longer but with Discount Merchant Brokers you can start accepting credit cards within 24 hours without any hassle.
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4. Question: Is it cheaper to “Purchase” or “Lease” your merchant equipment? Answer: Always keep in mind that when you decide to lease your equipment you will end up paying more then just purchasing from the beginning. For example if you find a merchant account provider that will charge you $400.00 to purchase a Point-Of-Sale (POS) credit card processing terminal. In comparison with leasing that same terminal for $40.00 each month for the next 36 months which will cost you $1440.00 after your contract is finished. That means you’re paying $1040.00 more than if you would have just purchased that terminal from the start. Another detail that has not been calculated is your local state sale taxes on your lease including the damage and loss waiver fee. With both these supplementary charges you can expect to be paying up to $20.00 more per month on top of the $40.00 monthly lease fee. Another detail about leasing your POS merchant account terminal is that if you’re locked into a 36 month lease it will not be cancelable; this includes the fact that even if you go out of business you will be required to pay that lease for the next 3 years until that contract is completed. WITH DISCOUNT MERCHANT BROKERS YOU GET YOUR EQUIPMENT FOR FREE, SO ALL YOU’RE EQUIPMENT WORRIES ARE A THING OF THE PAST!
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5. Question: Am I allowed to use someone else’s merchant account to process my transactions? Answer: No,that’s an illegal practice also known as “credit-card-laundering”. Using another business’s merchant account to process your own credit card transactions can lead to an expensive fine and possible ban from acquiring a merchant account in the future. Opening a free merchant account is easy with Discount Merchant Brokers , so skip the risks and start accepting credit cards worry free.
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6. Question: Which types of processing solutions can I select from? Answer: There are three types of solutions you can choose from: First being Real-Time Internet processing, Secondly being the retail Point-Of-Sale processing, and last is the mail order/telephone based processing solution. You can choose which solutions you would like to go with from our “Merchant Services/Merchant Account” page for your comprehensive guide finding what is right for you and your business.
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7. Question: At what time will I be able to access my merchant funds? Answer: Also known as Batching, most providers will deposit your funds within 1-2 days from time of credit card purchases. You should never wait more than 3 days to receive funds from your merchant account provider. Discount Merchant Brokers guarantees batching within 24-48 hours of transaction.
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8. Question: What does the term “Chargeback” mean? Answer: A chargeback is a credit card transaction that has been billed back to the merchant after the sale has been completed. On behalf of the cardholder, the card issuer halts an order due to a failure to deliver goods or if the customer is unsatisfied with the good. Cardholders are advised to resolve the problem with the merchant before bringing it to the attention of the card issuers company.
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