Template:Merchant Account

Merchant Account

A merchant account is an account that is created so that a business or individual can accept credit cards, debit cards, gift cards and other forms of electronic payment. This is also widely known as payment processing.

To process transactions, a merchant is charged a fee called a discount rate. The discount rate is a percentage of the dollar amount of the transaction. The discount rate varies, but is based on the business type, the method the transaction is taken (Swiped, Keyed, Internet), and other qualifying factors. An additional fee called a transaction fee, normally a flat fee, is also applied for each transaction that the merchant processes.

When the merchant processes transactions, they are entered into the processing networks. These networks are a series of electronic systems that facilitate the transferring of funds into the merchant's bank account.