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Merchant Account Terminology- There is lots of pieces to merchant accounts. Best Internet Merchant Account has written this general review on merchant accounts to keep you up to date on all the merchant account terminology. Merchant Account Terminology!

When shopping for the best internet merchant accounts it can be confusing some times because of all the terminology associated with merchant accounts. What makes it worse is that almost every merchant account provider will use slightly different words to describe the same things. Best Internet Merchant Account has dealing with cheap merchant accounts for quite some time so we have learned what most of the merchant account terminology is. As a result of that and in an effort to make your searching for merchant accounts easier, we have written this article. Consider this a basic dictionary of merchant accounts terms.

Acquiring Bank- An acquiring bank is a financial institution that offers merchant accounts and also provide the necessary information to the credit card issuer once a purchase is completed via a merchant account.

Automatic Check Handling- This is also known as ACH. Automatic check handling is simply an eCheck, an electronic payment.

Batch- A batch is often referred to as the collection of all the credit card receipts for a given day.

Card Verification Code- This is also known as the CVC2. It is located on the back of the MasterCard credit cards and is simply a security feature.

Card Verification Value- Also known as the CVV2 and is on is the same as the CVC2 but on Visa credit cards instead of MasterCard credit cards.

Charge Back- Perhaps the most important merchant account terminology that you should know. Credit card charge backs are when the credit card transaction is disputed. Charge backs will cost you money so it is important to avoid them.

Credit Card Fee- This fee is also known as a discount rate. It is a fee that is charged by credit card issuer to the merchant for each transaction, similar to a processing fee. Typically the credit card fee is around 2%.

Electronic Funds Transfer- The Electronic funds transfer, EFT, is a money transfer transaction that is conducted via an ATM machine, online payment, or electronic terminal.

Gateway Processor- Gateway processors are crucial to accepting credit cards. The gateway processor acts as the interface between the merchant and credit card processor.

Internet Merchant Account- This is a type of merchant account that is used mainly for online transactions.

Merchant Account- An account that is used by merchants that allows them to accept credit cards and then deposit the collected funds into the account. There are many types of merchant accounts and they all feature different features.

Merchant Account Provider- This is a company that issues merchant accounts to merchants. A merchant account provider will look at the credit history, what the purpose of the merchant account is, and who is requesting the account prior to issuing the merchant account.

Mobile Merchant Accounts- A type of merchant accounts that is used for people on the road and don’t have access to a traditional merchant account connection. Now days, mobile merchant accounts can be ran on smart phones.

Monthly Minimum- This is a predetermined amount of credit card transaction fees are processed each month or a monthly fee is charged by the providers.

Offline Processing- This is when you accept the credit card without running it right away. The credit card is processed at a later time. Very common in traveling salesman or in instances where the customer doesn’t take delivery of the product right away.

Payment Gateway- This is the code that is sent between the merchant and the financial institutions. Think of it as the middle man, an essential middle man.

Point Of Sale Terminal- More commonly known as a POS, a Point of Sale terminal is a machine that the credit card is swiped through which collects all the necessary information from the card.

Shopping Cart Software- This is software that is installed on your website that easily allows your customers to shop and purchase items.

Transaction Fee- This is a fee charged by the credit card processor for each transaction that is processed. It is a set fee ranging between $.25-and $.50.

Wireless Merchant Account- A form of merchant accounts which are used when no landline is available and the internet connection is made via a wireless card.

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