There are several different types of merchant accounts. As you might expect, not all of them are suitable for a web host or online business that will be conducting most of its transactions over the Internet. In general, however, credit card merchant accounts fall into one of the following three types. The major differences between these types of accounts are the transaction fees charged and the rules associated with the use of the account.


1.“Card swiped” retail accounts. A retail merchant account is granted to businesses which have a physical store front. To processor credit card payment using a retail merchant account, a physical credit card is needed which is swiped on the credit card terminal. The biggest advantage of these accounts is that they have the lowest transaction charges compared to the other two types and even the terms and conditions governing them are not as stringent.

2.“Keyed entry” retail accounts. These are designed for situations where the card is present but the merchant can't electronically swipe it. Often card numbers are keyed into a physical terminal. Fees charged for these kinds of accounts are generally higher, because the risk of a stolen card being used and getting past security measures is considered to be greater.

3.Internet accounts. These are also sometimes referred to as mail order or telephone accounts. If you conduct business over the Internet, this is the kind of merchant account you want; it is designed for businesses that often don't see their customers face to face. This means the physical card is not present to be swiped or imprinted. These accounts are a little more expensive than the other two, because of the security issue involved when the card itself is not there.

What kind of Credit Card Merchant Account Is Right for you?
Use a retail/card swiped account with a physical terminal if you see your customer and are able to electronically swipe 90 percent or more of your transactions. This is a good option for somebody doing local business from a physical store mainly selling non-recurring services.

Use a retail/keyed entry account if you always see your customer and can obtain a manual imprint of the card but not swipe it, or if you routinely swipe fewer than 90 percent of your sales. This sort of credit card merchant account is also a good option for a business mainly targeting the local market.

Use an Internet account anytime you don't see your customer face to face AND have a lot of recurring payments to take care of.
It is imperative that you choose the right type of merchant account based on the type of business you're into. These days, increasingly high number of people, are turning towards the internet to make purchases .

For more , visit Credit Card Processing and Merchant Services Provider.