Template: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.

Merchant Account is created by processors (such as TSYS, FDC, Global, etc). Merchant Accounts are bank independent. A given merchant account can connect to any bank account. Therefore, no matter which bank the merchant is using, they can change processors at will and they do not have to obtain their merchant account from their bank.

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.