Merchant Account

• A merchant account is an account that allows you to accept credit card transactions at your business location. The merchant account handles the transfer of funds from your customer's credit or debit card to your bank account.
  
  

Equipment

• Merchant accounts for retail locations require a credit card processing terminal. The terminal is either apart of your cash register or it can be a small device separate from your register. The processing terminal allows you to swipe your customer's debit or credit card to pay for transactions. To accept credit cards for an Internet business, you need real-time processing solutions that allow clients to enter credit card information to pay for products and services. If you perform telephone transactions, you need PC software to accept credit card payments without physically swiping the card.
  
  

Timing

• Once you establish a merchant account, you can begin accepting credit cards in anywhere from 24 hours to two weeks. The amount of time it takes to set up your account depends on the size of your company and how many customers you usually serve.
  
  

Payments and Reports

• Funds from your credit card transactions are typically deposited to your checking account. You usually receive funds within two to three days of the credit card transaction. In most cases, you will receive detailed transaction reports at the end of each month. With some credit card processing vendors, you have access to reports immediately online.
  
  

Costs

• Credit card vendors charge a fee to manage your merchant account, to connect your card terminal to the processing network, and charge a fixed transaction fee each time you swipe a card and each time you key the customer's credit card into the terminal manually.