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What are credit card merchant accounts?
A credit card merchant account should not be confused with a bank account. A merchant account is like a bank account in the fact that it accepts funds and transfers funds, but unlike a regular bank account, the sole purpose of a credit card merchant account is to accept funds made through credit card transactions. Without it, credit cards cannot be processed. Consider credit card merchant accounts to be contracts between the business owner and the bank, and the payment gateway between a credit card and the bank account that is set up for the business.
Terms and rules for credit card merchant accounts
Because a credit card merchant account is being supplied and maintained by a bank or other financial institution, there are terms you must agree to adhere to. Each merchant account provider will have their own list of what you can and can't do with their merchant accounts, but some common rules you can expect to come across include using the merchant account only for its intended purpose, notifying the provider if your business type suddenly changes, and not sharing your merchant account with other businesses. Failing to agree to and strictly adhere to these terms can result in the loss of credit card merchant accounts.
