The Merchant Account is a financial agreement between the business and the merchant bank that allows a business to start accepting debit/credit card payments. The merchant account is designed specifically for the handling of credit and debit card transactions and is separate to a business bank account.
It is the responsibility of the merchant bank account for processing card payments and manages the relevant fees/charges linked with credit and debit cards transactions.
Customers money you take from all card transactions is held in the merchant account before eventually being transferred on to your business bank account.
The merchant accounts play an important role in the card payment process as it verifies the customers card details to make sure they are correct and there is enough money in their account to make payment.
High Risk Merchant Accounts are accounts that are set up by specialist financial institutions to provide credit card processing services to those industries that fall under certain high risk business categories.
You need a merchant account if you are looking to take online payments in any way whether through your website or app. We can help you find the right provider from our extensive list of partners from high street banks to handpicked, cutting edge fintech companies from around the world. Call us for the latest list.
1. First thing to do is open a business bank account before you open a merchant account as this is where your customers money will be settled.
2. Shop around to get the very best deal for your business. High Risk businesses may struggle to get a business bank account from a mainstream high street bank. Sole trader businesses do not have to have a business bank account but certain merchant banks will require sole traders to do so but majority will not and will settle with a personal account. Business bank accounts can be setup as quickly as 10-15 minutes.
3. Contact us at We Tranxact to discuss your requirements and start the application.