Merchant Card Accounts

Written by Samuel Wong
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Just like credit card terminals that have become commonplace in our businesses and lives, merchant card accounts are starting to become overwhelmingly popular as well. Merchant card accounts allow a merchant with a specific card function to have his transactions processed and monitored by one of the large banks, such as MasterCard, Visa, or more commonly, American Express.

A merchant card account provides the merchant the opportunity to offer specific services and products. Some examples of companies that make use of merchant card accounts are several bookstores that utilize American Express to track, monitor, and approve transactions made with a card specific to a company. These cards are not useable at any other venue outside of what has been set forth in the contract of a merchant card accounts agreement.

Merchant Card Accounts Make E-business Possible

Another example is the increased use of parking meter credit cards that are used by major metropolitan areas. These cards are preloaded with funds, so they serve more as a prepaid credit card, rather than a conventional credit card. These cards are used for one purpose, and only one purpose, so therefore they require a specialized account, known as a merchant card account.

Merchant card accounts will continue to increase in popularity as fewer and fewer people rely on cash to pay for daily necessities. Cash is on its way out, and credit is the wave of the future. There are additional financial benefits to holders of merchant card accounts as well, due to the fact that because the card is paid for in advance, the company has access to the funds immediately, not just when the product is purchased.

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