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Old 09-22-2017, 10:24 AM
OCP Biz OCP Biz is offline
Join Date: Jul 2017
Location: Florida, USA
Posts: 79
Default What is merchant account?

A merchant account is a type of bank account that allows businesses to accept payments in multiple ways, typically debit or credit cards. A merchant account is established under an agreement between an accept or and a merchant acquiring bank for the settlement of payment card transactions. (Source: Wikipedia)

Last edited by OCP Biz; 09-22-2017 at 10:26 AM. Reason: Spell Correction
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Old 09-26-2017, 06:27 AM
g_nicks g_nicks is offline
Join Date: Jun 2017
Location: New York
Posts: 31
Default Re: What is merchant account?

If you want to accept credit cards for your business, you will need to get a merchant account. Basically, this is a contract between you and the bank in order for you to be given a line of credit. Without it, your customers will have to pay you through other means.

The merchant account is more important when you open an online business. This is because customers can only see your products using their web browser and if they want to order, this is the one of the means of paying for it.
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Old 09-27-2017, 02:15 AM
angel anna angel anna is offline
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Join Date: Sep 2017
Posts: 16
Default Re: What is merchant account?

Merchant Account is a type of bank account in which the fund is transferred using the credit/debit cards. So when a customer pays for a product using his credit card, the transaction is first transferred into the merchant account and from there it is transferred into the business account.

How you can obtain a Merchant Account

Issuing a merchant account is always based on some criteria.
1.Business History
2.The type of business you are doing
3.will check whether you have any other merchant account
4.Time period of the business

If you have a high-risk business then it's not necessary that your application will get rejected. Some they may compensate it by adding some other fees in the transaction.
Also, the Merchant Account have variety of fees attached to it, such as

1)Application Fees
20Setup Fees
3)Monthly Fees
4)Discount Rate
5)Per-Transaction Fees
6)Cross-border Fees
7)Rental fees for a credit card terminal
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Old 11-15-2017, 03:00 PM
Vasu Dev Vasu Dev is offline
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Join Date: Jun 2017
Location: Gujrat, India
Posts: 112
Default Re: What is merchant account?

Merchant bank account are required for if you want to start your business in other country.
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