Free Merchant Accounts

Written by Samuel Wong
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You may have heard of free merchant accounts trying to find a credit card services provider. A free merchant account can be invaluable to the correct business. The reason a free merchant account may not be for you is the fact that these accounts only offer debit card acceptance. They do not offer credit card payment processing.

It is legal to charge a fee for debit-based transactions. However it is not legal to charge a fee for using a credit card. Within these confines, many retailers have found by accepting debit cards only, they are able to accept card payments without the hassle and expense of a traditional credit card merchant account. When a customer makes a purchase and chooses a debit-based payment method, a charge in the range of 25 to 50 cents is withdrawn, along with the total of the sale from the card owner's account.

Wet Your Feet with Free Merchant Accounts

The companies that service these free merchant accounts collect their payment from the fee paid by the cardholder to the processor. When funds are sent from the bank to the processor, the amount of the purchase, with no additional fees subtracted, is deposited into the retailer's merchant account.

As you probably can guess, more and more people are using and relying on credit cards, especially their debit cards to make purchases. With these cards, retailers are at a great advantage in utilizing these free merchant accounts, because if a customer usually pays with the credit function of their ATM card, they can now choose the debit option to make a purchase at a merchant that may otherwise only accept cash and checks.


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