How Do Merchant Accounts Work

Feb 7, 2013 by

A merchant account is bank account that your business can use to accept credit or debit card payments from customers. Having a merchant account is increasingly becoming a necessity for a business and obtaining one is relatively easy with a merchant bank like Solid Trust Pay.
Giving the customers the option to pay by card would see your sales increase rapidly up to as much as 70% as shown by a recent study. This rise in sales is due the card payment increasing the customer’s spending capacity that makes the buyer more prone to making impulse purchases.
So how does a merchant account work?

To obtain a merchant account you need to make an application to a merchant bank also known as an acquiring bank or an internet merchant service provider, such as solidtrustpay. Your application will be approved depending on how long the business has been in operation, whether it is an online business, credit history, the business you are involved in and the risk that it entails to the bank. Certain businesses are classified as High risk businesses like online adult entertainment businesses for which a High Risk Merchant account will be approved.

The fees charged by the bank will depend on the above mentioned factors with businesses with good credit and financial history getting the best rates while the high risk accounts will be charged at a higher rate. Visit to find out the competitive rates offered by solidtrustpay.
Once the application is approved you will be provided with a Point of Sale (POS) terminal or an internet gateway will be set up for you if you are an online business and you are ready to accept credit and debit card payments.

When a customer makes a payment by card the POS terminal or the computer will transmit key information from the card to the acquiring bank that will in turn identify the financial institution issuing the card and transfer the data to the relevant credit card company. If the transaction is authorized, the credit card company will transfer the due amount of money to the merchant bank which will deduct its fee and transfer the balance to the account of the merchant account holder.

Therefore a merchant bank such as Solid Trust Pay plays the role of an intermediary between a merchant’s business account and the credit card issuing institution through which a customer makes payments by a credit card.

Visit and Start accepting credit and debit card payments to claim a competitive edge in today’s retail market.

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