Dedicated Merchant Accounts

What’s The Difference Between Aggregate and Dedicated Merchant Accounts?

As a merchant, if you are operating an online business you will need a merchant account to temporarily hold your money before the bank moves the cash to your actual account. There are two types of merchant account a provider may offer: dedicated and aggregate merchant accounts.

Dedicated Merchant account

A “Dedicated” merchant account, like the name suggests, is fully set up just for you- the merchant. It acts like your personal online bank account set up for your online business. In case you chose to create an account with a payment gateway e.g. Cart Pay, you will get a merchant account by default.

The advantage with a dedicated merchant account is that it allows you to negotiate custom rates for your company sales. The rates are based on the different products and volume of sales your business processes. Therefore, with a dedicated merchant account, you have more control over your cash?

If you are looking to set up an account with Cart Pay, be ready to go through the procedures that involve giving a clear history of your online business. Cart Pay ensures thorough security before issuing any dedicated merchant account.

Aggregate Merchant account

An “Aggregate” account is one that works in agreement with a range of other companies. To set up an account, you will be required to provide some info about your companies. However, the process getting approval for an aggregate merchant account is less complicated than when working to create a dedicated merchant account.

With payment gateways like Stripe and PayPal, you can effortlessly apply and get your aggregate merchant account verified. The problem with an aggregate merchant account is the fact that you will have limited control over the period your money takes to get ready for cashing after a deal.

Also, while a dedicated merchant account, can process your money within 2 to 3 days, an aggregate account, can take longer. Therefore, with a dedicated merchant account, you can have your payment processing transactions conducted at high speeds which save you from waiting for days to benefit from your online business because of delays by the payment processor. An aggregate merchant account may last as long as seven days or even more to process the transactions- this decrease the total revenues of your business.

Now that you know the different merchant accounts- you can decide on the path to trail on. However, Cart Pay has an excellent offer for retailers who go through the verification process successfully- a dedicated merchant account.

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