What is a merchant account?
A merchant account is an account at a financial institution that allows you to accept credit cards. You may find that you can acquire a merchant account directly from your local bank or you may decide to use any of a number of Merchant Account Providers that can be found using your favorite search engine.
A merchant account is set up with a financial institution to allow you to accept credit card payments directly from your clients. Unlike with most third-party services, money collected through your merchant account is deposited directly into your checking account within 2 to 3 business days. Having your own merchant account also allows you to take payments from your clients using your own business name, increasing consumer confidence and decreasing chargeback issues.
A merchant account is an industry term when a business owner / merchant and a bank have contracted to accept credit card payments. Establishing an account with a bank, Independent Service Organization (ISO), or Merchant Service Provider (MSP) allows you to process credit card transactions or electronic payments received from your customers. The bank, ISO, or MSP will deposit the sale proceeds into your business checking account, less the cost of the transaction .
