Merchant accounts, credit card terminals, payment gateways and shopping carts – whether or online, the merchant account processing system can be pretty confusing for a lay person. However, the basics of the business are pretty simple and straightforward. If you own a business or a store located in a physical environment you need to apply for a retail merchant account. If you are conducting business through a website, you need to apply for an Internet Merchant account and if you are taking order through the telephone, you need to get yourself a mail order merchant account.
Though you can apply for merchant service at your local bank, chances are that your request will be promptly rejected, especially if you want to apply for an Internet merchant service. This is due to the fact that a certain amount of risk is involved in accepting credit cards online. As the person is not physically present to sign the receipt, online frauds are definitely a possibility. As such you are better of applying for a merchant account from a specialist merchant services provider.