Basically, there are three different types of merchant account available for each different type of client or the nature of the business. These types of merchant accounts include the "retail" type, the "MOTO" or mail order - telephone order, type and the "Internet" type.
At first, it is not easy to identify what are the differences with these types. But, when compared to closely to each other, one can clearly see what sets each other apart from one another—that would be the transaction fees that are charged and of course, the set of rules that are associated when one uses the account.
Which type is the best?
Experts say that because of the differences in nature, more and more businesses opt to have more than one type of merchant account to cater specifically to the type of account or nature of the business they are handling.
1. The retail merchant accounts. This is one of the most popular merchant account types that most businesses use because it offers comparatively lower fees without really compromising the quality of service they give. In fact, majority of retail account providers is even more strict because they charge less for a service that is also of high standard.
Experts say that since retail merchant accounts are known to have a high percentage of credit card sales ranging from 60 to 70 percent—through the use of the card that is present as well as the number of times that the card has been swiped to the physical credit card terminal—they set higher standards to their clients. Usually, businesses that avail of this type of merchant account are those that are closely associated with restaurant, hotel, and grocery store establishments.