What is a merchant account?

Merchant accounts allow business owners the ability to accept credit card transactions. They are most often acquired through a bank or other type of financial institution and will take a fee % for every transaction. In a normal credit card transaction, the funds available and the account information must first be verified before a payment is accepted. This verification process is accomplished by using an authorization company, payment gateway, or payment processor. After the payment processor verifies the account information and makes sure the credit card is valid they send the information to your merchant account who then releases the funds into your savings or checking account.