What is a merchant account?
- Thread starter oneloop
- Start date
lord1027
Elite Member
- Sep 20, 2013
- 3,218
- 2,342
I guess it refers to people who have BST threads opened here. You need to be Jr Vip + pay marketplace fee to be a merchant here.
- Mar 10, 2010
- 42,695
- 107,107
A merchant account is an account with a bank/credit card processor that handles any payments to you that are done using a credit card.
Your bank can probably set you up with one if you are a legit registered business with a business bank account.
Hi BassTrackBoats, thanks.
Yes, I'm a legit registered business. I don't have a business bank account yet, I'm going to have the meeting to open it up next Monday. So what you're saying is this processor doesn't come with a business bank account by default? I have to specifically tell them I want it? Also, can you tell me anything about the costs involved?
Yes, I'm a legit registered business. I don't have a business bank account yet, I'm going to have the meeting to open it up next Monday. So what you're saying is this processor doesn't come with a business bank account by default? I have to specifically tell them I want it? Also, can you tell me anything about the costs involved?
- Mar 10, 2010
- 42,695
- 107,107
It is not a default part of one's business bank account and often one uses a different bank for their merchant account. You would have to apply for one. They look at a few different things as to your rate but if you are a brick and mortar business you should be looking at something under 2% for sure and lower if you take the time to shop around.
If you have an accountant I would be going to him with some of these questions as he would be able to address your situation and your business in specifics and you really need something more specific than you can typically get on a forum.
- Mar 10, 2010
- 42,695
- 107,107
Nah, just call your accountant up on the phone before you go to the bank and get some advice from him/her. They know your situation a ton better than most others and can help you over the phone.
That's a great idea, I'll do that, thanks 
Another question, why do I need a "merchant account" to receive money? I can receive money transfers on my private account just fine... Is "transfers" different from "payments", somehow?
Another question, why do I need a "merchant account" to receive money? I can receive money transfers on my private account just fine... Is "transfers" different from "payments", somehow?
- Mar 10, 2010
- 42,695
- 107,107
That's a great idea, I'll do that, thanks
Another question, why do I need a "merchant account" to receive money? I can receive money transfers on my private account just fine... Is "transfers" different from "payments", somehow?
The merchant account is only to accept credit cards. You can receive money transfers and payments without it but not accept Credit Cards as you need a merchant account for that.
- Mar 10, 2010
- 42,695
- 107,107
Only if you are selling something do you need to accept credit cards.
To work with a specific example: say I wanted to receive money from Adsense. Do I need to be able to accept credit cards to receive the money? Or is it just a normal money transfer enough?
No, adsense, CPA networks, etc all pay via ACH (Bank Transfer) so you would not need one for those kinds of revenue streams.
Hi OP.
Having been working / using merchant accounts for 10 years, I can honestly say that asking your bank for a merchant account would be a lot more costly than going through some of the ISO/MSP providers. There are a lot of different different companies that will can set you up with a merchant account through one of their partnerships with banks or acquirers. You'll find that you can get much better rates than your local bank will offer, and unlike a local bank that may want you to put down a sizeable deposit, going with a company that offers merchant accounts and merchant services means you won't have to put down any deposit at all.. this all depends on the market you plan to sell in, the products you are selling, etc...
You will need to be a registered business, and you can then apply to any number of companies that will offer you preferential rates. Some as low as 1.85%, even for MOTO (mail order / telephone order / ecommerce) merchant accounts.
Let me know if you need any more details or any specifics as I didn't want to write a novel here, in case you've already gotten some information elsewhere.
Having been working / using merchant accounts for 10 years, I can honestly say that asking your bank for a merchant account would be a lot more costly than going through some of the ISO/MSP providers. There are a lot of different different companies that will can set you up with a merchant account through one of their partnerships with banks or acquirers. You'll find that you can get much better rates than your local bank will offer, and unlike a local bank that may want you to put down a sizeable deposit, going with a company that offers merchant accounts and merchant services means you won't have to put down any deposit at all.. this all depends on the market you plan to sell in, the products you are selling, etc...
You will need to be a registered business, and you can then apply to any number of companies that will offer you preferential rates. Some as low as 1.85%, even for MOTO (mail order / telephone order / ecommerce) merchant accounts.
Let me know if you need any more details or any specifics as I didn't want to write a novel here, in case you've already gotten some information elsewhere.
- Mar 3, 2010
- 405
- 45
MA (Merchant Account) is mainly for credit card processing. In other words, accepting credit cards from clients.