A merchant account represents a payment option that is set up by a business through a local bank. The merchant account allows the payment through debit and credit cards, local and international; this offers the company the opportunity of concluding more transactions, as it widens its payment options.
The merchant account can be used by both brick-and-mortar businesses and online businesses; depending on the country in which is set up, the merchant account may not be required for a brick-and-mortar company, but in the case of online stores, this is a necessary aspect, regardless of the jurisdiction, as the customers won’t be able to conclude cash payments.
For example, when setting up a merchant account in Singapore, the company will be able to accept credit and debit cards transactions from approximately 150 countries, one of the advantages being that the merchant account can process payments in well known global currencies, not only in the local currency. Other countries, such as Estonia, accept credit cards from more than 160 jurisdictions.
In other jurisdictions, such as Cyprus, the companies wishing to set up a merchant account that will accept international payments will need to select an international merchant account, especially designed for this purpose (the country provides several types of merchant accounts, depending on the specific activities of a company and the country in which it is incorporated).
If you have an online business in Ireland, another option to explore merchant accounts refers to mobile phone payments, which increased in popularity in the last years, due to the fact that payment itself is processed very fast. Its advantage is given by the flexibility obtained by the customer, who can conclude the purchase at any given time, from any location.
The main advantage of a merchant account is that the customers can conclude a certain purchase regardless of the daily schedule of your business, in safe conditions, as all merchant accounts have to provide a safe gateway payment software.
Besides these advantages, it is important to know that companies can benefit from a simple registration procedure, which requires only several documents, but this can vary depending on the country in which the merchant account is registered. Investors can also conclude this procedure through online applications, in certain investment jurisdictions.
Published in partnership with Bridgewest