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How do merchant accounts work

March 8, 2013 by · Leave a Comment 

You have no cash in hand but really want to buy the new dress, with a credit card in hand you can buy the dress now and pay for it later simply by swiping your credit card. We almost take for granted the convenience offered to us by credit and debit cards. But have you given any thought as to what happens after you swipe your card or enter a card number to make an online purchase?  At the heart of each credit and debit card transaction there is a merchant account at work, so what is a merchant account and how does it work?

A merchant account is a special type of account provided by a merchant service provider like Solid Trust Pay to a merchant which enables the business to accept payments through credit and debit cards. It acts as an interface between your business and the financial institution that issued the credit card that was used to make the payment.

When a customer makes a credit or debit card payment, the information gathered by the swipe machine or the computer, depending on whether the transaction was a POS (point of sale transaction) or online transaction is transmitted to the merchant service provider at that will identify the card issuer who will be notified of the transaction and the money will be deposited in the merchant account by the credit card issuer. The merchant can collect his payment from his merchant account. The merchant service provider will deduct a fee from each deposit made to the account.

The merchant has the option of withdrawing his funds subject to the terms and conditions of the specific type of account he has and these terms would include a minimum amount of money that can be withdrawn from the merchant account.

Opening a merchant account is easy. There are many financial institutions including leading banks that offer merchant banking services and there are also the online merchant service providers like Solidtrustpay who provide a safe and secure mode to make and receive online payments.

Opening a merchant account with Solid Trust Pay is free and can be done within minutes and you have the option of choosing the type of account you need from a personal account if you want to shop online or a business account to accept credit and debit card payments for your online business and if you need to have fraud, loss and chargeback protection you can pick the Solidtrustpay corporate account for the payment of $50.

If you are looking at options to receive credit card payments for your online business go to without delay and start accepting credit card payments almost immediately.

The option to pay by credit card will boost your sales considerably and your business can stay ahead of the competition simply by opening a merchant account with Solid Trust Pay.

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