A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of electronic payment. This is also widely known as payment processing or credit card processing.

Merchants, or business owners who receive payment for their goods or services, must apply for a merchant account. The merchant account may or may not be established based on several factors of which risk is the most important. Merchants who own businesses with poor or no credit may find it difficult to establish a merchant account.

Rates and Fees

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Merchant accounts are not free and fees are charged whenever a merchant processes a credit card for payment. These fees vary amongst providers but all fees are based on something called Interchange. Interchange are the base rates dictated by Visa and MasterCard from which all merchant account providers markup their rates.

More on [ Merchant account ]

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