Common Merchant Account Questions

For businesses seeking ways to take payments online, a merchant account is a very useful tool. It increases sales and overall profits by allowing consumers to make online payments for purchases with credit and debit cards.

Q: Are merchant accounts available?

A: Merchant accounts are available to businesses worldwide, though some countries may require a merchant account that is considered high risk. A high risk account typically has higher merchant fees to offset potential misuse and theft.

Q: What are associated fees?

A: Merchant accounts include a fee charged to the business and this fee is assessed either on a preplanned timetable or levied per transaction. Fees for merchant accounts are not tacked onto the purchases of shoppers, and are removed from the account containing the business funds. Awareness of merchant fees and when these fees are due are important factors to consider when opening this type of account. Merchant account fees are often assessed against a monthly minimum spending threshold.

Q: What are merchant account restrictions?

A: Merchant accounts typically are not available outside of the United States unless classified as high risk. It is also important to note that many banks do not accept merchant account applications from people with a bankruptcy on their financial record.

Q: What are chargebacks?

A: A chargeback occurs when a customer disputes a payment made with a credit card. Banks which issue merchant accounts typically handle chargebacks by levying a fee to the business for research. If the customer is correct, the merchant account debits the amount of the charge and an additional processing fee against the business owner. Merchant accounts through most banks are closed if an excess of chargebacks takes place.