What is a merchant account?
A merchant account enables you to accept credit cards and debit cards as payment for the purchase of goods and services. There are different types of merchant accounts. The most common are: • Retail, Face-to-Face. If you have a traditional “brick and mortar” store, you can get a “retail” merchant account. You will use a special credit card terminal or cash register linked to credit card equipment to “swipe” the cards and obtain bank authorization. • Ecommerce/Internet. To accept credit cards on your website, you need a special “internet authorized” merchant account. Instead of a terminal, you’ll use a “gateway” to connect between your secure shopping cart and your merchant account. Certain safeguards need to be used to help prevent fraud. • Mail order/Telephone order. A “MO-TO” merchant account allows you to process cards online with a “Virtual Terminal,” or using a standard terminal or computer software. Again, certain safeguards need to be part of this process to help prevent fraud.
A merchant account is a bank account that you must have to accept electronic card payments from customers such as credit cards, debit cards, electronic checks, gift cards, and other payment methods. PPI establishes a merchant account on your behalf when you qualify for our payment processing services.
A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of payment. This process has many pseudonyms, among them, payment processing or credit card processing. Merchants, or business owners who wish to accept credit card payment for goods and services, must apply for a merchant account, usually through a merchant bank or MSP (Merchant Service Provider).
