This option is often used by small startup companies. It is the simpliest, fastest and sometimes the only solution to start processing possible, since banks seem to be not eager to open direct merchant accounts for the newbies in business. However, the users of third-party merchant accounts are exposed to a number of disadvantages, such as substantial hold times and precautionary balances. The biggest danger is that the imprudent actions of one merchant may entail undesirable consequences for all other merchants whose transactions were proceeded through this aggregated account, up to the total suspension of bank payments.
By using direct merchant account one can avoid these risks. Merchant accounts are exclusive to their own, and the troubles of other merchants do not affect them in any way. Direct relationships with acquiring bank create a more secure processing environment, providing lower discount rates. In addition to this, merchants receive their own billing descriptors which help identify the merchant’s name in their billing statement. If your customer does not recognize your company's name on his or her credit card statement (as it sometimes happens with a merchants who appear under the aggregator’s name), the transaction may be disputed and lead to a chargeback.
Since all transactions pass through the acquiring bank, the money goes straight to the merchant’s account and not the the aggregator’s. It prevents some potential risks (i.e. those caused by aggregator’s bankruptcy). All this enhances reputation and strengthens market positioning of your company.
Despite all the advantages of direct merchant account, a lot of merchants find the process of its acquisition too troublesome. Meanwhile, opening direct merchant account through a Payment Service Provider can significantly simplify the procedure. eComCharge provides bePaid (http://www.ecomcharge.com/
In fact, bePaid works as a one-stop communication center for merchants. There is no need to spend your time looking for better conditions in various banks. An application indicating your preferences is just enough, the company will do the rest and pick up the solution that suits your needs best of all.
bePaid lets e-merchants to accept and process multi-currency payments from the leading international and local credit and debit cards (Visa, MasterCard/Maestro, American Express, Diners/Discover and JCB). Payment security best practices are assured to the bePaid users. Advanced real-time statistics and reporting tools, fully PCI DSS Level 1 compliant payment gateway along with 3-D Secure and MaxMind built-in modules help to reduce fraudulent transactions, creating safe payment environment and, as a result, convenient working conditions.
Please visit the eComCharge website to discover a wide range of bePaid benefits and to register: http://www.ecomcharge.com/
eComCharge is a payment service provider, certified in accordance with the requirements of PCI DSS Level 1, a payment solutions developer and a technical integrator of payments. eComCharge cooperates with leading European and international banks, processors and payment systems to provide comprehensive solutions for businesses.