Within the payment processing industry, merchant accounts are categorized according to how they collect their credit card information and how they process their transactions.

There are two primary merchant account categories, “Swiped” and “Keyed” which reflects the two basic methods used to capture credit card information. Now within these two primary account categories are additional sub-categories, these are broken down according to the type of business and transactions techniques.

“Swiped” or “Card-Present” merchants directly interact with their customers face to face and physically swipe their customers credit card through a terminal or point-of-sale system. This is deemed the most secure manner to accepting credit cards by the card issuing companies. The sub-categories within this group include:

* Retail Merchants: normally conduct their business in an actual storefront or office space and interact with their customers face-to-face. They primarily use counter-top terminals or Point-of-Sale systems.

* Restaurant Merchants: requires a special set-up that allows for tips to be added to the final sale amount by settling the transaction with an adjusted price that will include the tip amount.

* Wireless / Mobile Merchants: needs to have the ability to accept credit cards transactions wherever they are located out on the road. They use wireless terminals or mobile phones to Kamagra jelly run these transactions in “Real-Time”.

* Hotel / Lodging Merchant: will authorize a customers credit card for a certain sale amount and then depending on length of stay or additional services rendered, will adjust and settle that transaction a day or more later.

“Keyed” or “Card-Not-Present” merchants indirectly collect their customers credit card information in a non face-to-face environment. Depending on their type of business and technology, these transactions can processed in many different manners. The sub-categories within this group include:

* Keyed-In Face to Face Merchants: these type of merchants do not process a credit card transaction with the actual card or customer present. The generally take orders via over the phone, fax, email or internet and then manually key-enter the cardholders information through a terminal or payment gateway. They then deliver their product or service to the actual customer face-to-face.

* Mail Order / Telephone Order (MOTO) Merchant: rarely if ever meet their actual customers. The customers card information is gathered via over the phone, fax, email or internet and then manually key-entered into a terminal or payment gateway software. Once the transaction is approved and completed, the product is then shipped to the customer for delivery.

* eCommerce / Internet Merchants: conduct ALL of their business over the internet through a web site. So all credit card transactions are processed online via a payment gateway in “real-time”. The payment gateway is integrated into the web sites shopping cart. The cardholders card is charged instantly.

Within these sub-categories are smaller, more niche categories for such industries as B2B and the Utilities sector. It is very important that your business receives the correct setup of your merchant account, in order to avoid unneeded higher rates and fees due to downgrades and additional surcharges.

Work with a reputable merchant services company who has the experience and knowledge to properly set up your business, so that you take advantage of the many industry specific pricing programs that are available from Visa, MasterCard and Discover. Become an industry expert and save your business substantial money.

Author Bio: Brooks Rohrer is the Founder and President of Tailored Transactions LLC and the website http://www.tailoredtransactions.com. His company specializes in offering industry specific merchant processing solutions for businesses worldwide. Their services include credit card processing, electronic check conversion, business cash advances and a gift and loyalty card program.

Category: Business
Keywords: credit card processing, merchant services, payment processing, merchant account, accept credit cards