Credit Card Merchant Accounts

Written by Samuel Wong
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Credit card merchant accounts are the cornerstone of your company's most important function--the intake of funds to sustain your company. Many people do not realize that the credit card machine itself does not supply your business with the cash you see in your bank account. It is through the services offered by credit card merchant accounts services that you are able to take a swipe of a card and turn it into cash, all within a few days!

Credit cards are swiped at your location and then processed by a merchant account service provider. This processor then sends your request directly to the issuing bank of your credit card. Upon final approval, the bank forwards payment to your merchant account service provider, and then the funds are deposited into their customer's credit card merchant accounts. Most of this takes place over the course of 1-2 days.

How Credit Card Merchant Accounts Are Different

Many people ask where the necessity lies with credit card merchant accounts. It is a great question to ask, and luckily, the answer is very simple. Of the tens of thousands of banks that issue credit cards, they want to keep the possibility of fraud to a minimum. These banks deal directly with those who service their credit card merchant accounts. This way, a bank is not doing business with the millions of credit card accepting establishments across the world.

As you can see, the main reason anyone would need to subscribe to any of the multitude of credit card merchant accounts available is to have the ability to accept credit cards. Without an account, a bank will refuse any charge directly submitted to them without the third party providing merchant accounts.


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