Merchant Processing… Simplified Merchant Account Providers >> Retail Merchant Account, Online Merchant Accounts, High Risk and Cash Advance

One of the questions I often get asked when someone is looking for online merchant accounts is “what exactly is a merchant account gateway?”

Now, it’s not the ONLY question that people have, but it is common enough to deserve it’s own article.

So, my goal is to clarify for you what a “gateway” is and why you need one if you want to accept credit cards online.

How a Merchant Services Gateway Works…

Let’s start off by using an analogy that most of us have direct experience of.

Say you walk into a store and you are ready to buy something. At the checkout area you will find one of three devices to process your credit card:

1. An electronic cash register with a swiper attached
2. A POS system (looks like a computer) with a card reader attached
3. A credit card terminal

Sometimes you will actually find a combination of these (say a POS terminal with a credit card terminal on the side).  Anyway, you get the idea.

In each case, the device (credit card terminal) acts like a payment gateway.

Here is how…

What you may not know is that each credit card terminal is programmed for the specific business using it, so that it can “connect” your payment with the the business.

The end result is that your credit card information gets sent through their merchant account for processing the payment, eventually resulting in money deposited into the bank account of the business.

And all of this happens automatically.

Well, when you are processing payments online you need something to LINK your shopping cart and/or website directly.

Sort of like a virtual credit card machine.

And that is the job of your merchant account gateway.  It provides the connection between your customer’s credit card and your merchant account.

In fact, a payment gateway allows for more flexibility because you can…

1. Link your merchant account to your shopping cart
2. Use the “quickclick” function to put “Add to cart” buttons on your website (just like PayPal)
3. Log into a secure website to process transactions directly, using the gateway as a “virtual terminal”

So the gateway acts as the connection between your shopping cart where people enter their credit card info, and securely passes that information along through your merchant account to process Visa, MasterCard and whatever other payments you would like to accept.

That’s why you need one if you are going to accept credit cards online.

Does that clarify things for you?

Now, you may be asking yourself “who do I contact to get a gateway?”

Choosing an Online Merchant Account Provider

Payment gateways are usually something that most merchant account provider can help you get set up with.

Provided they don’t focus solely on retail accounts.

To find a merchant account gateway and online merchant account provider, there are a couple of ways you can get started.

You can request merchant account quotes from qualified providers.  Simply follow the link and answer a couple of questions and we’ll take care of the rest.

If you want to find out a bit more about online merchant accounts follow the link and review merchant account set up tips.

Comments?  Questions?  Other merchant account issue you’d like to share?

We do value your opinion, and would like to hear from you.  Kindly leave a real comment for us and we will respond to you as soon as possible.

The need for emergency cash flow can happen to any business from time to time.

And with the current credit crunch happening across the country with many banks reluctant to loan you the capital you need, what can you do?

Well, used wisely a merchant cash advance can put badly needed dollars in your pocket in a hurry.

If you know what to ask before signing up for a merchant cash advance.

So what is a merchant account cash advance?

As the name implies, cash advances happen when a merchant cash advance company offers you a lump sum amount in exchange for a portion of your future sales.

What that means is that a company will give you cash in hand today, to be repaid from a percentage of your daily (or monthly) sales volume down the road.

So how do you know if you qualify?

Though requirements may vary among merchant cash advance providers, a good rule of thumb is:

1. if you already accept credit cards
2. have solid monthly sales volume
3. process Visa and/or MasterCard transactions greater than $5,000 per month, and
4. you have been in business for more than 6 months (though I’ve seen anywhere from 4 to 9 months)

than a merchant account cash advance may be right for you.

The next question you might be asking is…

So what’s the catch?

Key Merchant Account Cash Advance Questions

As you can well imagine, there are some important points to consider before signing up for a merchant cash advance.

For starters, it is important to remember that a merchant account cash advance is not a loan.  And this difference will have an impact on your finances, particularly your taxes.

Cash advances are treated differently than a business loan, and thus will effect your taxes differently (from a tax deduction standpoint). Before making any business decision it is always a good idea to consult with your CPA or other tax advisor.

Additionally, you’ll want to ask a number of questions regarding how the cash advance works, what the rates are, and how the repayment terms will affect your daily cash flow.

A short list of questions to get you started are:

1. Will I need to switch credit card processing companies?
2. What are the repayment terms (timeframe, percentage of sales)?
3. Once I am in repayment, can I change my credit card processing to another merchant account provider?

Once you’ve gotten that out of the way, the final step is…

Choosing a Merchant Account Cash Advance Provider

Would you like to get matched to qualified providers today?

If so, there are a couple of ways you can get started.

You can request a merchant account cash advance rate quote.  Simply follow the link and fill out the short form and we will contact qualified merchant cash advance providers for you.

If you are looking for a new merchant account, you can follow the link and find your state listed on the page.

Or you can request merchant account quotes and let us connect you with qualified merchant service providers that can help you get set up starting today.

Comments?  Questions?  Other merchant account issue you’d like to share?

We do value your opinion, and would like to hear from you.  Kindly leave a comment for us and we’ll respond as soon as possible.