Merchant Accounts > Types

Types of Merchant Accounts

Merchant accounts can be broadly categorized into two different types.
 
Swiped: The magnetic strip is read by a swipe through a credit card terminal/reader, or a computer chip is read.

“Swiped” merchant accounts typically have lower rates because it requires a face to face interaction with the customer and their credit card to be physically swiped through a credit card machine when a purchase is made.The magnetic strip is read by a swipe through a credit card terminal/reader, or a computer chip is read. Retail merchants like your local department store, restaurants, hotel or lodging, and mobile merchants with a wireless credit card machine are some examples of swiped merchant accounts. 
 
Keyed: the credit card information is manually entered into a credit card terminal.

“Keyed” merchant accounts typically have a higher rate than the swiped account because the customer and the credit card does not have to be present at the time of transaction. The higher rate is a result of more risk that the banks have to assume due to the difficulty in verifying the customer’s identity with such accounts. Mail order, phone order, and ecommerce merchants are great examples of keyed merchant accounts.

The Discount Rate

 

Have Questions?
If you are interested in Accepting Credit Cards and have any questions. Contact Merchant Warehouse.  Merchant Warehouse specializes in merchant accounts, and we guarantees the lowest cost on credit card machines, credit card processing and merchant accounts. Visit their site Merchant Warehouse or call toll free. They have in-house support and can answer any questions you may have 886-421-4158