Merchant Types

Since the ancient time people are trading and with time the payment processing, ability and ease to accept different modes of payments have also evolved. Let’s go down to the basics about the type of businesses and merchant.

categories we see in the 21^st Century.Retails
Also known as Brick or Mortar types Merchants, it’s the Retails. They are categorized as low risk business mainly because retail businesses provide high level security to the customer as cardholder is present at the time of purchase. A Consumer can just walk in a store, make a purchase, swipe their credit card and an authorization is obtained. Magnetic strips and now EMV chips are issued on the credit cards. As a merchant, you should retain a signed copy of the transaction receipt.

Example: Hardwood Store, Cakes Bakery, Landscaping etc.

MOTO
Mail Orders or Telephone Orders is the next merchant type on the list. Moto Merchant is categorized in the high risk merchant if it’s based on a service type business. Moreover, MOTO only merchant require a few extra steps to obtain a merchant account. Merchants must understand and learn the latest PCI compliance guidelines to be safe than sorry. Moto purchases can be dispute with many reason especially fraud, defective goods, wrong size and color, services not provided or merchandise not received etc.

Example: Credit Repair, Tech Support, Law offices, Product based business etc.

eCommerce
It’s all about digital marketing and eCommerce these days. It’s not long we might just speak computer languages in our day to day life. Reports show a 400% increase in online sales. eCommerce and Internet based business are high risk businesses. The boarding process undergoes a series of credit checks and underwriting before a payment gateway is deployed. This is the reason that the E- commerce Merchant has a tough time in finding the solution. It’s due to the fact that Cardholder and the Credit Card is not present at the time of purchase and there can be many reasons that the customer can dispute on the merchant.  Friendly Fraud is the hot topic of late and then next big issue is stolen credit cards. Merchant must be PCI compliant and their website should be compliant too. The website must have a SSL Cert and all terms and conditions must be fully disclosed.

Example:  Magazine Subscription, Adult Porn Streaming, Supplement Products

Merchant Stronghold works with all merchant types and offers a series of products and terminals to choose from Online Virtual Terminal, Point of Sale Machine and even Mobile Swipes for your business.