Merchant Accounts Vs. Processors

[JeremyM]

Hey all. I've been searching and browsing the forums and the net for the past 4 hours. I am still a bit fuzzy on the whole merchant account thing.

 

If I use authorize.net, can I just have them send the money from a CC payment to our company's bank account or is this not a good idea? I feel like you need a processor (authorize.net) and a merchant account (somewhere the money goes).

 

Say we have a company checking account at Bank of America. Can I just get a processor such as authorize.net and that just sends it right to the BoA account?

 

Thanks in advance.

[♥toyicebear]

Hey all. I've been searching and browsing the forums and the net for the past 4 hours. I am still a bit fuzzy on the whole merchant account thing.

 

If I use authorize.net, can I just have them send the money from a CC payment to our company's bank account or is this not a good idea? I feel like you need a processor (authorize.net) and a merchant account (somewhere the money goes).

 

Say we have a company checking account at Bank of America. Can I just get a processor such as authorize.net and that just sends it right to the BoA account?

 

Thanks in advance.

 

You need a merchant account and a processor.

 

you can ask your bank about getting a merchant account or authorize.net can also help you to get a merchant account.

[JeremyM]

What exactly is the merchant account for then?

[♥toyicebear]

What exactly is the merchant account for then?

 

 

a merchant account is a account which enables you to accept credit card payments.

[JeremyM]

a merchant account is a account which enables you to accept credit card payments.

 

 

So is it like a form of a bank account? Or does the merchant account just allow you to accept credit cards and then it sends the money straight to your physical bank account?

[richieboy29]

a merchant account is just a requirement for most credit card processors. there are some companies like fasthosts who will do the whole thing for you but 9 times out of 10 you are cheaper to get your own account and then get a processor such as streamline or secpay to transfer the money to your account.

[Olewynja]

A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of payment cards. This is also widely known as payment processing or credit card processing.

 

Merchants, or business owners who receive credit card payment for their goods or services, must apply for a merchant account typically through a merchant bank or MSP (Merchant Service Provider). The merchant account will typically be established based on several factors. Merchants who own businesses with poor or no credit may find it difficult to establish a merchant account through traditional routes.