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What Is a Merchant Account and Why Is It Needed

Thanks to the Internet, trade has been at a fairly global level for a long period of time. Companies today sell goods and services all over the world, regardless of borders, distances, and different time zones.

The financial sector is confidently transforming and offering tools that guarantee the ability to make payments around the clock. In simple words, a Merchant Account is exactly such a tool and is a special account that allows a merchant to accept payments from buyers’ cards.

Merchant Account: What Is and How Does It Work?

A special Genome account, the owner of which can accept payment cards VISA, Master Card and others, is called a Merchant Account and makes it possible to receive payments from clients’ bank accounts.

Such a convenient online account ensures that payments are accepted around the clock, regardless of the opening hours of the bank or the seller: the client can pay for the purchase using an eWallet at night, on a weekend, or a holiday, and the money will definitely go to the Merchant Account.

In addition, such an online account allows you to accept money from different countries of Europe and the world. With it, it is much easier to expand business activities outside the home jurisdiction.

At the same time, a Merchant Account works with many currencies (USD, EUR, etc.), which are often not available with “classic” banking.

How does it work? Every person who has made a purchase on the Internet at least once interacted with an online account. From the point of view of the consumer, everything is quite simple: choosing a product, going to the checkout page on the site, paying.

However, “Inside” the Process Looks Completely Different:

  1. The processing center redirects the client to the payment form page after they click the “buy” button.
  2. The buyer enters the payment information about his card and the request is sent to the acquiring bank, which contacts the payment system.
  3. The payment system requests information on the Merchant Account from the issuing bank and if everything is in order, the payment system sends a confirmation to the acquiring bank.
  4. The information goes back to the processing center, which notifies the seller that the payment has taken place.

You need a Merchant Account if you plan to sell goods and services without limiting yourself in the geography of transactions. Creating a Genome account will make doing business and managing funds a convenient process and allow you to accept payments 24 hours a day, 7 days a week.

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