Retailers in India can grow their business beyond the Indian markets by accepting credit cards, debit cards, prepaid cards and other modes of electronic payments. It is essential to open a merchant account to accept electronic payments. A reliable merchant service provider can help Indian retailers expand their business and increase profitability. While selecting merchant services, make sure that they are experienced and seasoned veterans in the industry. Gather quotes from at least five service providers and compare their costs and fees. Do not hesitate to negotiate before signing up an application form. Little research and planning can save you from a lot of hassle.
Generally, merchant account providers offer the options of real time processing and manual processing of the transactions. Manual processing collects payment information manually to processes it later in batches. Real time processing is expensive and required for products distributed electronically. Before finalizing a merchant account provider, you must compare different costs and charges. Here is a list of common fees and charges. They are Internet discount rate, transaction fees, monthly fees and minimum, holdbacks and chargebacks, and setup and equipments. Select the best merchant account provider only after comparing these fees and inquiring about any other fees such as contingency fees, penalties or unexpected costs.
Merchant accounts are useful to process transactions for a brick-and-mortar stores as well as ecommerce websites. Sometimes, the same merchant account provider can setup a point-of-sale terminal for brick-and-mortar store and real time payment gateway for ecommerce website. A successful merchant account setup can offer competitive advantage to a retailer.