Businesses that want the ability to directly accept credit cards as a form of payment will need to have a merchant account.
If you run a retail business with a storefront or some physical location, you will most likely process credit card payments using a retail merchant account. In a retail credit card processing environment, usually a card-swipe terminal will be used to read the credit customer's credit card information and then transmit that info, along with the transaction data, to the credit card processor for approval. Most retail establishments are considered low risk because there is a physical credit card present at the time of sale.
In cases of phone orders, fax orders, mail orders, or any time there is no physical credit card present to swipe at the time of sale, MOTO Merchant Accounts, (Short for "Mail Order & Telephone Order") merchant accounts, are needed. Credit card processing for MOTO merchants is done using an Internet Payment Gateway that has a Virtual Terminal. MOTO merchant accounts are considered a higher risk than retail merchant accounts because there is no credit card present at the time of sale and no customer signature which increases the potential for fraud and chargebacks. Most MOTO merchant accounts will also allow ecommerce sales, however, not all Internet merchant accounts will allow for MOTO sales.
Processing credit cards by ecommerce requires an Internet Merchant Account. Processing credit cards by ecommerce requires using an Internet Payment Gateway with an API (Application Programming Interface). The gateway API is used to link the merchant's website, online orderform, or other billing application and enables merchants to process credit card transactions through the gateway without having to login to the virtual terminal. For card-not-present transactions, the gateway serves the function of a card-swipe terminal in that it is what transmits the transaction and credit card data to the processor for approval or decline.
Mobile Credit Card Processing includes the ability to accept credit card payments using a cellphone, tablet, or other mobile device. In most cases, mobile payment processing will use a mobile payment gateway and require some payment application on the mobile device. Mobile credit card processing is somewhat unique in that it can be done as a card-not-present transaction by keying the transaction data into the payment application, or it can be done as a retail/swiped transaction by using attaching a mobile credit card reader to the device.
Businesses located in the USA can qualify for US credit card processing if: 1) The business has a US address and EIN, 2) The business has a US Bank Account, AND 3) The signor/guarantor on the application, which does not have to be the business owner, has a US social security number. If any of those conditions can not be met, the business will need an International Merchant Account. Whether a US or an International merchant account, the business will be able to accept credit cards from anywhere in the world as long as the credit card has the MasterCard or Visa logo. US merchant accounts are available for both low risk and high risk businesses, however, it's important to understand your risk level and work with an appropriate processor.
An Internet Merchant Account is sometimes referred to as a "MOTO" (Mail Order & Telephone Order) Account because they all require the ability to process a credit card payment when there is no physical credit card present to be swiped. A standard retail "swipe" merchant account does not allow processing of these "card-not-present" transactions.
If the domestic banks are denying your merchant application because they believe your industry is considered high risk, CyoGate can help! We have an offshore network of merchant processing partners that enable us to provide low cost, high risk merchant solutions to a much wider range of businesses and industries.
The CyoGate Internet Payment Gateway offers one of the quickest and most cost effective ways to accept and process credit card and electronic check payments online. Our payment gateway works with most existing merchant accounts and supports hundreds of popular web shopping carts and eCommerce platforms.