Reseller vs merchant account | Your Merchant Services Rep

 Reseller vs Merchant Account

When you're looking to get your business up and running, it's always good to have a solid understanding of the options available to you. In the world of payment processing, that means knowing what a merchant account is and how it compares with other types of accounts. A merchant account is a service that allows businesses to accept credit cards in exchange for goods or services. A reseller account is similar but provides added benefits like more control over pricing structure and additional support services.

Definition of a Merchant Account

A merchant account is a financial account that allows you to accept credit card payments. A merchant account is usually offered by banks and credit unions, but some online payment processors also offer them.

A merchant account can be free or low-cost, but there's usually a monthly fee for having one.

Definition of a Reseller Account

Reseller accounts are perfect for small businesses that don't have enough volume to justify a merchant account. A reseller account allows you to process transactions for other businesses, so you can use it to provide payment processing services to your customers.

Pricing Structure Differences

In general, Reseller accounts are cheaper than merchant accounts. The reason for this is that resellers don't have to pay any transaction fees on their transactions. Instead, they pass those costs onto their customers by charging higher discount rates and monthly fees.

Merchant accounts will usually cost you more money because they come with higher monthly charges and transaction fees--but those can be offset by high sales volume or a large number of small transactions (for example, if many customers make one-time purchases).

Additional Services

·    Merchant accounts offer a range of additional services. These can include fraud protection, credit card processing, and other more advanced tools.

·    Reseller accounts are limited in the services they offer. They typically only provide payment processing services such as accepting credit cards online or over the phone, but not much else beyond that.

While merchant accounts are often best for high-volume businesses, reseller accounts are good for smaller businesses or those looking to process transactions on an on-demand basis.

While merchant accounts are often best for high-volume businesses, reseller accounts are good for smaller businesses or those looking to process transactions on an on-demand basis.

A Reseller account allows you to accept credit card payments through your own website or mobile app without having to worry about the technical details associated with processing payments. You'll also be able to offer your customers the same features they would find at sites like Amazon and Etsy (such as gift cards).

The main difference between a reseller and a merchant account is that with a merchant account, you're responsible for collecting all information from customers before submitting it to Stripe; this includes billing addresses and credit card numbers (or other payment details). With a reseller account, Stripe handles this step for you--you simply receive funds in your bank account after each sale has been made!

Conclusion

In summary, reseller accounts are best for businesses that need to use the Stripe platform on an on-demand basis. They're also good for smaller businesses that want to process transactions with Stripe but don't need all of its features or pricing options. If you plan on using Stripe as part of your daily operations and/or have high volumes of transactions each month, then a merchant account may be better suited for you!