Merchant accounts, as the name suggests are accounts for merchants or business owners with banks or financial institutions, through which credit cards are processed. Thus, a merchant account provider works to process credit cards for a merchant for a certain fee that is fixed or a small percentage of the amount being processed. The methods utilized to process credit cards may vary from one merchant account provider to the other. The industry type and the volume of credit card payments that need to be processed, further determine the credit card payment method.

Credit Card Processing Terminals
Credit card terminals are the smart choice for worry-free electronic processing. A credit card terminal, also known as Point-of-sale Terminal (POS) is the latest in technology and equipment. It is a stand-alone apparatus that must be plugged into an electrical outlet as well as the phone line. Also, a credit card terminal can work on batteries and operate over the internet or be powered by satellite dishes and communicate wirelessly. A credit card terminal allows a merchant to swipe or key-enter a credit card's information as well as additional information required to process a credit card transaction. The card number, date and amount are verified. Then follows the authentication procedure when it is decided whether the processor needs to go for VISA or MasterCard. Then the information is logged in the processors' computer and then transmitted back to the terminal, in which it then prints a receipt to the customer. Within a few days the payment is electronically deposited in the merchant account.

Automated Response Unit (ARU)
ARU is a credit card processing option which is intended for merchants with low volume. With ARU, credit cards can be accepted using any touch tone phone- your cellular phone, a pay phone or your office phone. The benefits of Automated Response Unit are that it can be used in any setting, while out in the field, at your office, in your car or anywhere you have access to a touch tone telephone. Also, this method is cost-effective as no credit card terminal or processing equipment needs to be purchased.

Payment Gateway
A payment gateway is equivalent to a physical POS (point-of-sale) terminal located in most retail outlets. It is an online payment solution. It can be integrated with their shopping cart or can be used with options such as online invoicing, quick pay etc. to receive payments from their buyers.