What is a Merchant Account?
In a nutshell a merchant account gives you the "Merchant" the capability to accept credit cards, debit cards, and ACH payments from your customer. A merchant account is the cornerstone of your payment solution. In simple layman terms, A merchant account enables the transferring of funds from a shopper’s credit card, or debit card to your bank account upon the purchase of a good or service. It is the single most important account you will establish other than your bank account. In essence without a merchant account you will not be able to accept the most widely form of payment - Credit Cards and Debit Cards!
Generally, in order to establish a Merchant Account you will need to apply for one at your local bank or at an ISO. Your first encounter with a Merchant Account will probably be at the bank when you open your checking account. Banks use much more stringent rules in approving your application. They may scrutinize the scope of business you are in, your credit history, and other factors. Depending upon the business you are in, qualifying for a merchant account may be difficult. Also, if you are qualified you may be paying a higher rate at your bank. On the other hand an ISO might be a better place to establish a Merchant Account.
You may ask - Why would I apply for an account at an ISO versus a bank? Great question.
An ISO also known as an Independent Sales Organization is an organization that is registered with Visa, MasterCard, and is affiliated with a bank. ISO's use much more flexible terms in qualifying you for an account because they might split the risk with bank. ISO's can also provide very competitive processing rates because they have much lower overhead and less brand name recognition. ISO's for the most part work on very slim margins because they are in direct competition with the banks.
At Merchant Discount Rate, it is our goal to match your needs to the perfect merchant account. Our staff of experts will find the proper account, thenguide you every step of the way during your application process. We get 98% of our applicants approved within 24 - 48hrs. Please contact us with any questions at firstname.lastname@example.org or fill out the form to the right.