You will also be charged a monthly or per transaction fee on the POS terminal for registering credit card transactions. Challenges in obtaining a Merchant Account Accepting credit card purchases without a signature Without a signed credit card slip, there is no proof that you have actually sold the goods or services to the customer. Remember, the bank will always accept the customers word without proof to the contrary. The bank is accepting a degree of risk in giving a merchant credit-granting status. The merchant is, in effect, a loan officer of the bank and therefore, has the potential for risking the bank's money through potential charge backs, non-payment or other action.
Banks offset the risk through several means.
In many cases, these are held in non-interest generating trusts. There are no signatures to verify transactions. There have been numerous Internet Merchant failures in recent history and your business will be tainted by these. To obtain an IMA, be prepared to pay a significant security deposit. In short, the deposit is frequently beyond the means of most small businesses.