As the name suggests, Internet merchant accounts enable a merchant to accept credit payments online. The primary criteria for this is a merchant should have an account with any financial institution or bank. This is necessary to accept credit card payments that are deposited to this account.

It is important to point out that most local financial institutions or banks do not usually provide for Internet merchant accounts. This is because direct face-to-face transactions involve the customer's signature, while online transactions may sometimes result in credit frauds. In this case, as an alternative there are many acquiring institutions that can assist you in setting up these accounts. If you utilize the services of the acquiring institutions, you must make sure that the account can access any of these networks: EDS, Nova, Vital, First Data Merchant Services, Norwest or Paymentech. Also, keep in mind that these financial or acquiring institutions charge a fee for their services. Some may charge a monthly fee, as well as a monthly statement fee. All institutions charge a percentage of the transaction.

Before a credit payment is actually made, the customer's credit card information needs to be validated. There is a code that checks credit card numbers, credit card types, expiration dates and payment amounts. Aside from validating information, the code also enables acceptance of this information.

Whatever acquiring institution you choose, make sure that there is adequate fraud protection. Since transactions are online, you will also need a website. If you search the net, you will come across many websites providing online merchant transaction services.