what is a Merchant bank accounts.??

Merchant bank accounts: your need-to-know guide

Your questions about merchant accounts answered

Before you can take card payments from your customers, either online, over the phone or via mail order, you'll need to set up a merchant bank account to obtain a merchant ID....

What is a merchant account?

A merchant account (merchant ID) is provided by a merchant bank (merchant acquirer) under an agreement which allows a business to accept credit and debit cards.

It is different to a business bank account because it is where your customers' card details are securely sent for authorisation.

There are different types of merchant accounts, depending on whether you want to accept card payments online or by telephone/mail order, or do repeat billing.

Why do I need a merchant account?

Your merchant account will validate customers' card details and ensure that funds are available in order to complete the transaction. Once the funds are cleared they'll be sent to your specified business bank account by your merchant acquirer.

Where can I get a merchant account?

Most of the UK's leading banks will offer 'merchant services'. Alternatively, most good payment service providers can help set up your merchant account for you. Because they buy in bulk, they can negotiate good transaction rates with the bank.

Prices will vary between providers so it's a really good idea to shop around to get the best value and service. Sage Pay has a very competitive merchant services package, but we're also happy to work with whichever bank you prefer.

What else do I need to know about merchant accounts?

There are several steps involved in applying for a merchant account, including a validation process required by the merchant bank. Because your merchant account is a banking facility, the bank will need to validate the nature of your business, along with the identity of the business and all company directors in order to grant you with a merchant account. This can take time — anything from 10 days to 3 or 6 months in some cases, so it's a good idea to apply sooner rather than later.

What is a merchant account?

Every payment made with a credit card involves the transfer of funds to a merchant account, which a merchant (that is you) holds directly with a bank. The merchant has full responsibility for the transactions that occur with their account, and each bank has its own terms of service to which account‐holders must adhere. If you want to accept credit card payments through your Shopify store, you will need either a merchant account of your own or the services of a third‐party payment processor like PayPal.