Questions about merchant account

[DraX]

Im doing an educational project about the internet and internet business.

And would need some help with a few questions. Prefferable explained for "newbies"

Questions about merchant account:

1) whats the purpose of a merchant account
2) who uses it?
3) What are the costs around a merchant account

Think thats about it......

Thanks for helping me !!!

[DraX]

plz.......

[vicki]

1) whats the purpose of a merchant account
A merchant account provides more control over your money
It gives the merchant their own descriptors
It gives the merchant more control over their scrub intensity and chargeback ratios

2) who uses it?
Any merchant that wants more control over his money, scrubs, chargebacks and/or wants his own descriptor
Any merchant that wants to pay less than 1/2 of what 3rd party billing charges

3) What are the costs around a merchant account
The merchant bank sets the merchants discount rate overall plus they have their own fees that include monthly minimum, annual, and per transaction .. *some charge a monthly statement fee application fee, others don't*
The gateway processor charges a per transaction fee also *some charge for things like customer service, fraud protection .. others don't*

If you have any more questions .. just ask

[vicki]

I forgot one

Another reason people use them - they don't want to have to worry about their 3rd party processor going under or stealing their money ;)

[DraX]

Thanks alot Vicki

I appreciate it

Just what i needed

[vicki]

no prob :D