What is a Merchant Account?

A Merchant Account is a bank account which allows businesses to accept credit and debit card transactions.

Actually think of your merchant account as “THE CONNECTOR”.
This account connects all of the points of contact in your business has with credit card information to your physical business bank account (e.g. checking / savings).

Here's an example in a "brick and mortar" business: Many business have a terminal in their business that is dedicated to taking credit cards. We see them all the time at grocery stores these days. As the clerk is scanning our purchases, we step over to the little payment terminal and swipe our card. This is the point of contact for that business with a credit card for their customer. That card information then goes through the system (discussed in another blog post) and the money is moved from the customer's bank or credit card company to the grocery store's checking account. The pipeline that connects it all together is the store's Merchant Account.



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