What is a Merchant Account?

A merchant account is an agreement between you and the provider, giving you the ability to accept credit cards. They are ultimately liable for every dollar that you are funded. In exchange for the liability and service, they charge fees to cover their cost.

The Nuts & Bolts:

The account - to accept credit cards, a business or merchant must apply for an account through a merchant provider, such as Gotmerchant.com. Approval depends on a number of factors, including but not limited to:
1. Owner or officer's personal credit score
2. Method of acceptance (swiped or keyed)
3. Products or services sold
4. Requested monthly volume and average ticket
5. Business longevity
6. Business financials
7. Return & refund policies
8. Chargeback history (if currently processing)
Processing Fees - there is a cost associated when you
Payment Systems - to process the charges, you must have some type of service or product to be able to charge the credit card. Retail merchants generally use a credit card machine. Internet and MOTO merchants will use an Internet gateway service. Wireless or mobile merchants will use a touch tone service or a wireless credit card machine.

Credit Card Processing Articles