3 Merchant Account Basics

Merchant Account Basics

Now that we've established why it is helpful, if not imperative, for your business to accept credit cards, we're going to get into the good stuff! Believe it or not, we actually find merchant accounts interesting.

The following two sections of the Merchant Account Information Guide will lay the framework that will serve as the basis for the rest of this guide as well as any subsequent guides you go on to read. The sections are a bit longer than others, but they are very important. We've tried to make the reading as fun and easy as possible. Please don't mistake our humor as unprofessional; it is intended to make an otherwise dry subject bearable and, dare we say, even enjoyable.

3-1 About Merchant Accounts

A merchant account is an account that is set up with a credit card processor, acquirer, or other financial institution, which makes it possible for a business to accept bank cards and electronic funds as a form of payment for products or services rendered. Merchant accounts are linked to a standard business checking account, and all funds from sales are deposited directly into the business checking account by the acquiring bank.

Do not copy or redistribute this content in any way without express written permission from the Merchant Council