What is a Merchant Account?

A merchant account is a type of bank account that allows a business to accept payments by debit or credit card. Although it is considered a type of bank account, the business can choose where the payouts of credit or debit card transactions go. Normally a business bank account is linked to the merchant account. A merchant account also constitutes an agreement between the retailer, the merchant bank supplying the merchant account and the payment processor for the settlement of credit card and/or debit card transactions.

Why do I need a merchant account to process credit or debit cards?
A merchant account and agreement is required so that the bank may allow you to process credit or debit card transactions. Through this relationship, the bank agrees to allow you to charge the cardholder's credit or debit cards for goods and/or services you provide and in return, the bank, has the responsibility for debiting the funds from the customer(s) and depositing it into your bank account.

A merchant account can be obtained either through the bank or through a third party processor. WAPPoint can assist you with obtaining a merchant account through the bank or offer you a shared merchant account.

What are the requirements for obtaining a merchant account through the bank?
- High Turnovers
Small businesses and new businesses are often denied by the banks when trying to obtain a merchant account. The reason for this is that small and new businesses often have lower turnovers and thus pose a risk should disputes occur. WAPPoint was initially started because of the need for an intermediary to help these businesses. How can a small or new business grow if they constantly lose sales because the customer never returns from their visit to the ATM? To cover the bank's risk, the bank initiated a mimimum turnover requirement, securing a constant flow of funds should disputes occur.

- Long Term Contracts
To cover the risk aspect of a merchant account, the bank's require long term contracts. This is to ensure commitment from the retailer that a constant flow of credit or debit card transactions will occur.

- Business Bank Account
As a merchant account approval is based on a relationship between the bank and the retailer, the banks often want to be able to see a history of your account. By having your business bank account with the same bank you are trying to get a merchant account from, they are more likely to approve you, depending on how you run the account.

- You must be a registered business
The four major credit card companies (Visa, MasterCard, American Express, and Diners) all require applicants to be legally registered businesses.


What is a "shared" WAPPoint merchant account and is this a viable option for me?
WAPPoint offers two kinds of merchant accounts. A shared merchant account for businesses who require short term contracts ie exhibitions and businesses who are either just starting out or not reaching the high turnovers required by the banks. We are currently only offering this to all our Exhibition package clients and 1 year and 3 month WAPPoint cellphone and web terminal package clients.

By obtaining a shared merchant account, there are several aspects to consider:
- You do not have to be a registered business or have a business bank account.
- You will have no minimum turnover requirements.
- Transactions will reflect on the cardholder's statement as WAPPoint Pty Ltd.
- You do not have to sign long term contracts and can connect and disconnect the service as it suites you.
- Payments for transactions processed, will be transferred into WAPPoint's bank account and paid to you on the 4th business day.

What is an "own" WAPPoint merchant account and is this a viable option for me?
An "own" merchant account is a merchant account obtained through WAPPoint with the bank. This means that you do not have to comply with all the requirements that the banks have but can still have the benefits of having your company name appear on the cardholder's statement and benefit from lower transaction fees without having to secure any minimum turnovers. The best part is, we remain your sole service provider so no fees are paid to the bank directly. We are currently only offering this to our 1 year and 3 month WAPPoint credit card terminal clients.

By obtaining your own merchant account through us, there are several aspects to consider:
- You do not have to be a registered business or have a business bank account.
- You will have no minimum turnover requirements.
- Transactions will reflect on the cardholder's statement as your company name.
- Your transaction fees are lower - even without securing high turnovers.
- Payments for transactions processed, will be transferred into WAPPoint's bank account and paid to you on the 4th business day.

Can I link my Merchant Account to any bank account?
Yes you can link your WAPPoint transaction payouts to ANY bank account, whether it is a business account, cheque account, savings account or your credit card, makes no difference to us. It also does not matter which bank you bank with.