What is a Merchant Account?

In the simplest terms, a merchant account allows a business or website to accept credit cards, debit cards, and electronic checks for products and services. The business owner sets up a merchant account with a company, like Merchant Warehouse, Merchant Express, or Authorize.net to name a few, who assists the business in processing credit and debit card payments. The payments are processed using either credit card terminals in which consumers swipe their cards, or through software where consumers or the business itself manually enter credit and debit card information for payments. Within moments of swiping or entering the card information, the merchant account company verifies that the customer can indeed pay for their purchase. An immediate response is sent back either accepting the payment or declining the payment. From there, the merchant account company finishes processing all accepted payments with the credit card company or bank and deposits the money into the business's account within a couple of days. Although it sounds complicated, once the merchant account is set up, it all happens within seconds.

As a business setting up a merchant account, you will quickly find that there are hundreds of companies on the market and it can be difficult to decide what company to go with. When looking at merchant accounts, it is important to look at the discount rate (how much the company charges for processing the credit or debit card), the length of the contract, transaction fees, and any other monthly charges. Arming yourself with this information will help you compare merchant account companies and find the company that is best suited for your business.

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Merchant Account

Merchant Warehouse has over 115,000 satisfied clients, an A+ rating from the Better Business Bureau, and will match any competitor's rates for merchant accounts and credit card equipment.

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