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Merchant Account for Software Downloads


Before we get to why you need a merchant account for your software downloads service, let's talk about what are merchant accounts and their purpose. Is merchant account any different than other accounts? Well, yes, very much. A merchant account is a specialized account for online merchants and businesses, as the name suggests.

It is basically a bundle of services that are used to automate the entire process of receiving credit or debit card information, verifying it, and transferring the payments directly to the merchant's account. Quite simply, it provides a virtual terminal for credit or debit payments without the need for a signature or card.

This is very useful for online businesses; in fact, it's very much essential now. Writing checks or paying cash is out of fashion now, and the truth is that paying virtually via credit cards is simply more convenient and safer.

Denied by Other Credit Card Processors?

Credit card processors and banks reject people on a regular basis who are seeking a merchant account for their business. You may be wondering why a bank would dismiss the chance of holding an account for businesses. The answer is simple: banks and other services rely on underwriting guidelines to make the decision of approving or rejecting the application for a merchant account. Depending on these guidelines i.e. whether they are lenient or strict, banks reject or approve businesses.

These guidelines decide whether a business is a high-risk or low-risk one. Now there are several reasons that could get your business to land in the high-risk zone and when that happens, your application gets rejected. The list of industries that are usually deemed high risk is long, and most online trades and businesses are on it. If you have been denied by credit card processors before, there's a way out for you.

Since these banks have strict guidelines, they choose not to work with businesses that are risky. For example, if you are a grocery store or restaurant, getting a merchant account will be fairly easy for you. However, if you're an online merchant and provide services such as online dating, SEO, or software downloads, getting a merchant account would be much more challenging.

However, there are specialized services such as this one that deal with high-risk businesses such as yours. These services offer merchant accounts to high-risk businesses and all the benefits that come with it.

Risk Analysis of the Software Downloads Industry

It's true that the software downloads industry is on a high. Just look at Silicon Valley; it's blooming. Apps and software downloads can make you a billionaire, and that's not an exaggeration in any way. Despite all of that, the software downloads industry is not the most popular industry for credit card processing services.

Chargebacks is a major reason for this. Plus, the fact that there are literally thousands of app developers and millions of apps makes it difficult for banks to approve all applications. The risk is high in this industry, despite the fact that billions are to be made here.

Many software download businesses are unable to take off, and a big reason is that they either don't have a merchant account or their choice in that matter has been poor. Having a good merchant account can save you a lot of money in rates and fees, and you can avoid chargebacks as well.

Online Merchants

Software downloads is a purely online-based trade, and while you can try to sell many other products by going door to door, that approach is utterly implausible in the case of software downloads. This business requires solid online support and having a reliable and powerful merchant account takes care of that.

Software downloads are not just common in the consumer area; many businesses are constantly looking for good software to improve their company's performance and efficiency. There are specialized software downloads for almost every business and trade these days. Providing these industries with the software they require isn't an easy job, but it can be made easier if you have a good merchant account.

Type of Merchant Account Needed

Yes, you need a merchant account for your software download business, but are all merchant accounts the same? Do they all offer the same services and features at the same price? Well, of course not. This is the tricky part, but putting in some efforts and comparing merchant account services to pick the best one for you can really pay off. Here's what you need to look for if you're searching for a merchant account for your software download business.

Make sure you get all the ecommerce features such as virtual shopping cart and other ecommerce software since all your business will be conducted online.

Recurring bills will help you charge regular customers on a monthly basis and establish a constant flow of money for your business.

Get the best rates possible and avoid application fees and setup fees (if you're a startup) because there are good services that don't charge these fees.

Having mobile apps to monitor your merchant account will be a plus point.

Make sure your customers have multiple payment methods available and that all credit cards are supported.

Domestic and Offshore Options

Merchant accounts can be domestic or offshore. Comparatively speaking, the domestic account is a better option as it's more secure and will usually cost you less. However, in some cases, an offshore account is the only option.


For all the software download businesses that are looking for a reliable and convenient merchant account at an affordable price, this service is worth checking out. Having dealt with software download companies, we have the experience that can help your business grow and prosper.

In the end, it's all about picking the right service, so make sure you conduct some research and pick the service that's best for you.

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