The company I work for provides an ASP service to its clients. Normally we collect payment, which goes into our merchant account, and we write each client a check every so often. We have a client now that wants us to use his merchant account directly, meaning we collect payment and send it directly to his merchant account.

Apparently this is not uncommon, but I haven't found any documentation on best practices for how to accomplish it. Has anyone had experience doing this before and could shed some light?

Note that the people we're collecting payment from are essentially the client's customers, not ours (we just power the web site), so there shouldn't be legal issues (e.g. factoring).

You would need to get their merchant account information - i.e. if it was LinkPoint get their store number and PEM cert. And then pass this information over to the LinkPoint secure gateway when the merchant is paid. The money would be deposited into their merchant account / checking account.

__________________
Corey
Merchant Accounts | Toll Free Virtual Solutions | My Merchant Account Blog