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Finance allah shmoop What is a merchant account All right

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You sell earrings at the mall hearings for years and

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you know other regions private ones You're a merchant You

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take credit cards visa amex mastercard A customer pays for

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her ear ring with a visa card charge for three

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hundred bucks Alright Well where does that money go How

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does it get there Well because you pierce on earth

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have a merchant account you take her little mag strip

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thing Me on her card with all our information has

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everything on it like her name bank number address phone

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a whole bunch of other codes on it You swipe

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it in your little reader and voila Three hundred boxes

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taken from her account with visa taking about five bucks

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of this transaction for the pleasure or pain of doing

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it And then visa room it's two hundred ninety five

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dollars into your bank of america merchant account that's How

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you got paid So who gets a merchant account Do

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you need a fundamental genetic resistance teo Kryptonite to be

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granted such lofty status No not at all Generally speaking

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all you need is a few grand in a basic

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bank account Reasonable credit scores like above six hundred ish

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And you have to be willing to fork over some

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minimum initial amount as well as minimum monthly amount So

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it's still worth it for the credit card companies and

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banks to continue to be in business with you like

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there's A basic monthly fee for most of them Well

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how do you lose your merchant account status Well you

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offer lousy product to your customers who demand their money

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back through charge cards in what's called a charged back

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like they dispute the charge and make the credit card

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company go after you for the refund And that then

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violates some minimum few percent floor from a credit card

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taking perspective and well then visa mastercard amex will They

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could just stop issuing you a credit taken stopped taking

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customers cards from you and then you have to only

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take cash You're screwed But as long as you follow

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the rules pay your bills and continue to attract creative

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people who want piercings in you know interesting places like

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the mall Then you'll remain in business for a long

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as you want more or less and well so that's

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It You're one of the few the proud the merchants

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