A merchant account is an account with a merchant account processor (or a
financial institution acting as a processor) that enables you to enter and
process credit card transactions.
How does it work?
You submit the customer's credit card information to the merchant
account processor, which then authorizes the transaction. As each transaction
is authorized, the money is transferred into a holding account with the
merchant account processor. The money from the holding account is transferred
to your designated bank account on a regular basis, either daily or weekly
(depending on the merchant account processor's schedule).
The sales transactions that you have processed on a given business day are
accumulated and deposited into your bank account as a single amount. In
addition to your monthly bank account statement, you'll receive a statement
from the merchant account processor that shows the total amount of each
day's transactions during that statement cycle and the fees that were
How do I get set up to accept credit
cards as a customer payment method?
What are the fees for a
About "card swiped" and
"key entered" transactions
What you should know
before processing a credit card payment online