An online merchant account is a business with an
internet presence that accepts payments
electronically.

If any business has an online merchant account they
will need to have a system in place that will process
various credit or debit card payments as well as
online bank transfers.

This is a common account that accepts the payment from
the customer and passes it on to the merchant’s bank
account. This system is referred to as an "Automated
Clearing House".

An ACH is an institution that facilitates or assists
in the transfer of funds from one financial
institution to another. For instance, if you submit a
check from another bank to your bank for payment, the
check will go to the Clearing house in the area.

This intermediary body will authorize the payment that
will be transfered to your bank account. It cuts out
the hassle of you having to go to the bank whose check
you have to get your cash.

Similarly, an ACH assists online merchant accounts to
receive payments from any payment processing service
such as VISA or MasterCard, even various online banks.

An ACH acts as the link between his bank and the
online merchant bank account, to facilitate the
transfer of funds. Whenever a customer authorizes
payment through an online process, such as a credit
card or any electronic means, the ACH ensures that the
payment is validated and that the merchant will
receive his payment in due course.

Many online merchants have chosen to use free online
payment processors to cut on costs of setting up their
own payment gateways. Though the process is free, the
payment transactions still have to go through the ACH
in order for the merchant to receive his payment.

This is a very secure way of transacting online and is
catching on very fast. In fact, accepting payments
online is as easy as accepting cash over the counter,
only this way the merchant does not have to go to the
bank to deposit the money, the ACH does it for him.


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