What is Merchant Account?
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What is Merchant Account?

Question by jeo_onn: What is Merchant Account?

Best answer:

Answer by Monsta’
A Merchant Account is simply a relationship between a retailer, a merchant bank and payment processor for the settlement of credit card transactions. Any retailer who wants to take credit card orders must establish a merchant account.

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  • A merchant account allows you to accept credit cards from customers at your business. Once you have a merchant account, you then have to program your credit card machine (or software, or ecommerce site) with the merchant account information. Now when a sale is made, the card is approved or declined, and the funds are deposited into your checking account. Note: your checking account or bank account is different from a merchant account. There are rates and fees associated with accepting a credit card from your customers. For example, if a customer uses a check card at your store for $ 100 and the rate is 1.39%, then $ 1.39 comes out and $ 98.61 is deposited into your account. It costs money to accept plastic from customers.