How Merchant Accounts Work

If you have a business today, you need to have a merchant account. A merchant account will allow you to accept credit cards from customers. Traditionally, people use to pay for goods and services with cash but nowadays, people hardly use cash anymore since it is more convenient for them to just swipe a credit card. In addition, credit cards are more secure than cash. People can track all their purchases with credit cards unlike cash.

There are several companies that offer merchant accounts which you can set up. You want to be sure to pick the best account for your particular needs. Your needs will depend on what kind of transactions you will be accepting and how many transactions you think you will handle.

Another consideration for you to think about is the kind of terminal you will require. The credit card terminal is the device that will allow you to accept the credit cards and will also allow communication between you and the credit card company. Basically the way that it works is that the customer will swipe their credit card through the terminal. The terminal “checks” with the credit card company of the customer to be sure the funds are available or more specifically, that the card is active and the transaction is approved. You then get a message stating the transaction was approved or not approved. A number will be made available for the customer to call if their transaction was not approved.