An Internet Merchant Account (also known as a Merchant Service Agreement) with your acquiring bank defines how you can accept credit card payments from customers over the Internet. The relationship described by the Internet Merchant Account is different than that of a typical Merchant Account used in a normal business. With a Merchant Account some of the transactions may take place when the customer is not present at the point of sale - examples of these would be mail or telephone orders. The acquiring bank makes a distinction between Customer Present and Customer Not Present (CNP) transactions due to the extra level of risk associated with Customer Not Present transactions. In the case of an Internet Merchant Account the customer will never be present so there is an extra risk with this type of transaction.

The issue of the Internet Merchant Account is usually one of the deciding factors for merchants when deciding if they will go with a PSP or a Payments Bureau. Each acquiring bank has their own criteria for determining if they will provide your business with an Internet Merchant Account. Examples of some of the factors that effect this decision are the level of risk associated with your type of business, the previous banking history of your business, the previous trading history of your business and the results of a thorough credit check. There are also specific charges associated with an Internet Merchant Account which may be a deciding factor for your business particularly if you are only starting out.

I have an Internet Merchant Account so what is next?

If you have an Internet Merchant Account then you have the option of using either a PSP or a Payments Bureau. We recommend that you read the rest of this guide and then look at our comparision table which will help you decide the option that best suits the needs of your business.

What if I cannot get an Internet Merchant Account?

If you have been refused an Internet Merchant Account then you still have a number of options:

• Apply to a different bank.
• Reapply to your existing bank.
• User the services of a Payments Bureau.

We recommend you contact your bank to seek some advice on why your application was refused. You may be able to make some changes to your business model or business plan which would act in your favor. You can also try applying to a different bank for an Internet Merchant Account. If you need to start taking payments immediately then we suggest you use the services of a Payments Bureau. We recommend that you read the rest of this guide and then look at our comparison table to help you decide which Payment Bureau best suits the needs of your business.

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