A merchant account is a special account set up by a business owner that allows the acceptance of credit cards. It is into this account that the funds are deposited whenever someone makes a purchase with a credit or debit card. From the merchant account, the money is transferred into the merchant’s business bank account.
There is no bypassing a merchant account. If the proprietor of a business wants to offer customers the convenience of accepting credit cards, he or she must enter into a merchant account agreement. This agreement is a contract that spells out the responsibilities of each party, and what the legal ramifications would be if one of the parties failed to comply with the terms and conditions. Aside from terms and conditions, there will be a contract to sign. The reason for the specification of terms is to protect both the merchant and the provider.
This contract outlines the responsibilities of each party involved. The set term is a protective component of the contract as well, so that the merchant services provider cannot suddenly take away the merchant’s ability to accept cards as payment.
Typically, a merchant account is created on a month-to-month basis, but only after six months has passed. If the merchant should decide to close out the account, he or she must provide a written notice at least 30 days prior. If the merchant has purchased processing equipment, the agreement would be a two-year term, then it would revert to a month-to-month agreement. Lastly, if the business owner elected to participate in the free equipment program, the term would not change to a month-to-month agreement until three years had elapsed.
When the retail merchant account is closed, there is typically a closure fee. If a business owner should cancel the account before the term is up, there will be an early termination fee as well.
Instamerchant is the solution to your credit card needs. We make it simple to get your merchant account set up so you can accept credit and debit cards. With us, there are no setup fees or application costs; they are waived. The only costs that will be incurred for a merchant are the monthly gateway fees, statement fees and transaction fees. These costs are minimal compared to the service and capabilities you receive.
To learn more about how you can enter into a merchant account agreement and get started with your credit card processing, visit us on the website or give us a call. We would be happy to get you started.