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Payscout Blog

Merchant Account Basics

Posted by Lyn McKay on Jun 10, 2015 9:00:00 AM

bigstock-Bank-Terminal-67038664.jpgIf you want to accept credit or debit card transactions as a business, you will need to have a merchant account. Merchant accounts are a business arrangement between you and a credit card processor that allows you to accept card-based payments from your customers. Those payments are then deposited into your bank account by the credit card processor after the sales are complete.

There are two basic types of merchant account; one for card-present transactions and one for card-not-present transactions. A merchant account for card-present transactions is used when the credit card and cardholder are physically present at the time of the sale and the card is swiped through a credit card terminal, or via a mobile card-swipe device. A merchant account for card-not-present transactions is used when neither the card nor the cardholder are present for the sale, as is typical in eCommerce sales.

You will have to get an application approved by a credit card processer in order to get a merchant account. The processer outfits you with the products and services you need to accept card-based transactions, including hardware and software.

The credit card processor acts as a middleman between you and the issuing bank. When the bank authorizes a customer’s transaction, the transaction amount is credited to your merchant account by the processor. At the end of the day, you settle all of your transactions in one batch with the processor, who deposits the funds into your bank account typically within two days.

By partnering with a credit card processer like Payscout, you will never again have to turn away business, because you can’t accept card payments. You also get to enjoy the benefits of working with an international company while still receiving dedicated attention, honest dealing, and genuine appreciation from the Payscout team. We’ll treat your business with respect and professionalism, setting up your service quickly, with ready support every step of the way.

Check out our website for more information on merchant accounts or contact our helpful, live customer service representative at 888-689-6088 to address any questions you may have!

Topics: Merchant Services, Credit and Debit Card Processing