A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. So a merchant account is an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions.
In a credit card or debit card transaction, the card-issuing bank in a payment transaction deducts the interchange fee from the amount it pays the acquiring bank that handles a credit or debit card transaction for a merchant. Interchange fee is a term used in the payment card industry to describe a fee paid between banks for the acceptance of card based transactions. The rate chanrged to a merchant by a bank for providing debit and credit card services. The rate is determined based on factors such as volume, average ticket price, risk and industry. The merchant must set up this service with a bank, and agree to the rate prior to accepting debit and credit cards as payment. Next Up DEFINITION of 'Merchant Account'. A type of business bank account that allows a business to accept and process debit and credit card transactions. Merchant accounts are necessary accounts for many businesses, and are essential for online businesses. There are different types of merchant accounts to choose from for businesses. A merchant account is an agreement made between the business/seller, the bank where the merchant account is held and the payment processor to settle all transactions made by debit and credit cards. The fees associated with these accounts are usually in the following categories: monthly, discount rate and transaction. A type of business bank account that allows a business to accept and process debit and credit card transactions. Merchant accounts are necessary accounts for many businesses, and are essential for online businesses. There are different types of merchant accounts to choose from for The “Transaction Fee” is the last half of a processing rate. As shown in the Discount Rate definition, in a processing rate quote of 1.79% + $0.25, the Transaction Fee is $0.25. The Transaction Fee is a flat fee paid by the merchant for each credit card transaction. Merchant account Transaction Fees typically range from $0.10 – $0.50 and vary by processor, merchant, and sales agent. A merchant account is a type of bank account that allows businesses to accept payments by payment cards, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions. In some cases a payment processor, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement. The statement fee is a monthly fee associated with the monthly statement that is sent to the merchant at the end of each monthly processing cycle. This statement shows how much processing was done by the merchant during the month and what fees were incurred as a result. The term used to describe a category of financial services in the United States that is used by businesses. Merchant services are authorized financial services that allow a business to accept credit card or bank debit card transactions using online ordering or point of sales systems.  Transaction Fees. A transaction fee is charged to process each and every transaction, whether it’s approved or declined by the card-issuing bank. The fee is set according to the type of transaction; for example, swiped or keyed. Your merchant account agreement stipulates a minimum amount of transaction fees that your provider requires you to generate each month. If your monthly fees fall below this minimum, you still pay the same monthly minimum fee. Definition: A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. So a merchant account is an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions. If you already have a merchant account, you'll probably notice that another difference between the two is the fees; typically, the Internet merchant account fees are higher because of the assumed higher risks of online payment (as opposed to a face-to-face credit card or debit card transaction).
https://en.wikipedia.org/wiki/Interchange_fee http://www.investopedia.com/terms/m/merchant-discount-rate.asp http://www.investopedia.com/terms/m/merchant-account.asp http://www.investopedia.com/terms/m/merchant-account.asp https://www.cardpaymentoptions.com/glossary/merchant-account-transaction-fee/ https://en.wikipedia.org/wiki/Merchant_account http://www.webopedia.com/TERM/M/merchant_services.html http://www.transfirst.com/resources/merchant-basics/merchant-account-fees http://sbinfocanada.about.com/od/onlinebusiness/g/merchantaccount.htm
merchant fees definition