[Weekly Kick] What is a Merchant Account?

FeeFighters Weekly Kick will feature answers to common user questions regarding payment processing. When you google “what is a merchant account,” there is a ton of confusing info full of corporate jargon. Here, Sean explains succinctly exactly what is a merchant account.

Feel free to tweet us questions to @feefighters or email me stella@feefighters.com

 

Video Transcript:

Hi, I’m Sean. I’m the CEO of Fee Fighters.

A lot of people ask what is a merchant account, and it’s a little bit complicated. A merchant account is actually not a place where your money is stored, but if you want to accept credit cards, you need something called a merchant account and an agreement that goes along with it called a merchant account agreement.

What it really is is just a pass through. When somebody swipes a credit card or gives you their credit card number or you, you transact with it. The money flows from their bank account or credit card account into your merchant account, and then the very next day is the positive (deposit) into your regular bank account. And so it’s that merchant account that’s sitting in the middle there where your money just sort of passes through.