What is a merchant account?
Recently, I had signed up for a course on starting an online business and I kept reading a lot about merchant account in the prospectus. Naturally, it got me interested as to what exactly a merchant account was.
Oh, I forgot to introduce myself!
Hello! My name is Jenny, Jennifer and I was a housewife for eight years. I was pre-occupied with home chores and my twins but since my husband and I split, it was increasingly getting difficult to make both ends meet.
I am not somebody who would depend on state funds for livelihood because I believe asking for them and receiving them seriously dents my self esteem. And for the kind of person that I am I’d rather work it out myself than stand in welfare scheme queues for hours and for days to claim benefits.
No, it just does not agree with me. I would rather be working away at my desk in that time and making four folds than getting a whole lot of sympathetic looks from people around. You know it is not my cup of tea to make sound things like they are sad. They are sad alright. But again the power to make them good lies in our very own hands and that thought is empowering to me!
So, I set about learning how to start up:
With kids as small as five years and a house to look after, I decided that staying at home and setting up an online store is what would work for me initially. The kids are at home since I cannot afford day care for them yet. I don’t want to splurge on nannies and baby sitters as of now as well.
They would probably be even home schooled! Well, time should tell us. If the business that I intend to start on the internet takes off as expected, we can plan a bit but right now the plan to home school them looks quite appropriate.
This course that I am about to take promises to teach me to not only set up a store on the internet with the option to receive payment through the online mode but it also promised to help me chart out my path financially.
Of course, the investment is not going to be too high because an online store does not have heavy overheads like a physical store.
Here is what exactly a merchant account is?
A merchant account is a sort of trade account that is maintained by the merchant’s bank that agrees to hold, maintain and process the debit and the credit card transactions of the online business. Because of the nature of the online business itself, it is paramount that the traders have such an account handy.
Are there any types of merchant account?
There are many genres of merchant account and each one is different because of the difference in the nature of the online business or the treatment of the bank in processing the fees for its services rendered. For example, if the merchant pays a monthly fee, it is called a monthly account. Likewise, if the merchant gets a special rate from the bank for some key feature like holding a very large account then it is called a discounted rate account and if the merchant pays the bank per transaction, then it is called a transaction account.
So, here was my plan:
I wanted to be able to start to get my feet wet. Initially, I knew that I had to be extremely cautious about the way things had to be handled. I cannot in any way take excessive risks because I cannot stake everything that there is.
Apart from this, it made more sense to be cautious also because this was my first attempt at high risk payment gateway. The course that I took drilled in the basics but I was sure that the nitty-gritty’s would come in only with tie and experience.
Courage and determination:
Footed with the right information, the other attribute that one needs to succeed in this ruthless world of business is courage to face the obstacles and the determination to stay put even in the most trying of times. One thing was sure and that was that once I had made up my mind, there was nothing that was going to change it because I firmly believe that “success is indeed failure turned inside out; it is the golden tint in the cloud of doubt!”