A merchant account is basically an agreement between a merchant bank, retailer, and payment processor. It can allow your business to accept payments by credit and debit cards.
Whenever your customers pay for your product or service with a credit card online, the money should be deposited to the merchant account first. Within seven working days, the funds will be transferred to your business bank account.
In case you want to sell your products online, having at least one merchant account is a must since it will allow you to accept credit card payments on a 24-hour basis.
Obtaining the first merchant account might take some time. To speed up the process and minimize the risk, consider getting a review from the bank that holds your personal or business account.
Keep in mind that internet merchant accounts have higher fees due to the risks of online payments. It’s necessary to check all fees attached to your merchant account. The most common types are the discount rate, rental fees, application fees, setup fees, and per-transaction fees.
If your e-commerce business is not stable yet, you may also want to consider some alternatives to merchant accounts.
To learn more about getting the first merchant account, check out the infographic provided by MyPaymentSavvy:
