| Securing an internet merchant account (IMA) is | | | | merchant account?" |
| often the first step to getting onto the | | | | The acquiring bank will need to see a range of |
| ecommerce ladder. Although your business bank | | | | documents, such as your business registration |
| seems like the most obvious place to obtain your | | | | documents, confirmation of domain ownership and |
| IMA, it is often worthwhile shopping around with | | | | any supplier agreements, in order to ensure that |
| online payment service providers. They usually | | | | your business is compliant with their requirements. |
| have relationships with a number of acquiring | | | | Have the acquiring bank send you a list of |
| banking partners that they can leverage in your | | | | documents so that you can compile them in order |
| favour to secure more competitive rates. | | | | to speed up the application process. |
| Shopping around for your IMA can often be a | | | | "What are your settlement terms?" |
| daunting process. If you are new to ecommerce, | | | | Settlement terms affect how often funds will be |
| here are six questions that you should ask to | | | | settled from your merchant account to your |
| ensure that you get the best possible deal. | | | | business bank account. Settlement terms can |
| "What are your acquiring rates and fees?" | | | | vary from 3 days to 4 weeks. Acquiring banks |
| The most obvious question to ask is around | | | | will often hold funds in your merchant account for |
| pricing and rates. Typically, an acquiring bank will | | | | a period of time after a transaction has been |
| charge you a monthly fee for your Merchant ID. | | | | made if there is a risk of chargeback so it is |
| You will also pay an acquiring fee, which is a | | | | worthwhile finding out how settlement terms will |
| percentage of the transaction value, and a flat | | | | affect your business model before you apply. |
| authorisation fee per transaction. Additional fees | | | | "What are your security requirements?" |
| may be levied for refunds and chargebacks. The | | | | One of the reasons an internet merchant account |
| rates of all fees may vary between credit and | | | | can be difficult to obtain is the higher potential risk |
| debit cards. | | | | of fraud associated with an online transaction. |
| "When can you review my acquiring rate?" | | | | Card schemes, such as Visa and Mastercard, |
| If you are a start-up, have no trading history, or | | | | should be able to provide you with updated |
| the nature of your business is deemed high-risk, | | | | security guidelines and minimum requirements for |
| your acquiring rates may be higher. If this is the | | | | your ecommerce website. |
| case, ask your bank to review your rates at a 6, | | | | One of the technical requirements of the Visa and |
| 12 or 18 month mark as, if your business is | | | | Mastercard card schemes is that your payment |
| performing well, they may be more inclined to | | | | network is Payment Card Industry Data Security |
| give you more competitive rates. | | | | Standard (PCI DSS) compliant. If you are not PCI |
| "What are your terms & conditions?" | | | | compliant, the fines that card schemes can levy |
| Terms and conditions of merchant accounts vary. | | | | for a non-compliant merchant are high. If you |
| This can affect many factors, from the duration | | | | then experience a security breach on your own |
| of your contract and frequency of usage to what | | | | systems (where you are maintaining your own |
| is shown on your website. If in doubt, contact the | | | | payment pages) daily fines can be levied and your |
| acquiring bank for guidance. | | | | ability to process card payments can be removed. |
| "What documentation do I need to apply for your | | | | |