Made Simple and Cost effective
A retail account is defined as one where most of the sales transactions are done in person, “face to face.” The merchant is able to swipe the client’s card through a card reader/credit card terminal and obtain a signature from the card holder. The card information is then sent electronically to the card issuing bank for authorization.
The advantage of a retail account is that it allows the merchant to have access to card processing rates that are much lower than those required on sale that is “keyed” in manually. Since the card is present, and the merchant is able to swipe the card, transmit the card information electronically, and obtain a signature, the processing bank considers this type of transaction to carry the least amount of liability and thus provides the merchant with lower discount rates.