What Is A Merchant Account? And How Can It Help Your Business?

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Here's what a merchant account is and how it can help your business: Via ForbesAdvisor

While accepting card payments is essential for business, unfortunately, businesses cannot start accepting these payments on their own. They must first create a merchant account that acts as an intermediary between a customer’s bank account and your business’s bank account.A merchant account is a type of business bank account that allows businesses to process electronic payments such as debit and credit cards.

A setup fee will be the first fee you are likely to encounter. It is a one-time fee typically required to set up the new merchant account. Your merchant account might also charge a monthly fee for the preparation of your monthly statement, a gateway fee for remote or online transactions, a monthly minimum fee for accounts that fall below a monthly minimum, an annual fee for maintaining the account and a customer service fee for merchant support.

These additional fees can increase your cost-per-transaction to well over 3%, so make sure to factor them into the overall cost of a vendor when shopping for merchant accounts.If you want your business to accept credit and debit cards, you will need a merchant account. A merchant account is a necessary intermediary drawing funds between your customers’ bank accounts and depositing those funds into your business’s bank account.

 

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