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Finance: What is a Merchant Account? 4 Views
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Description:
A merchant account is a banking account owned by...a merchant, i.e. someone selling something. Or just someone with a few grand in the bank and decent credit.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Bonds
- Terms and Concepts / Credit
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Mortgage
- Terms and Concepts / Regulations
- Terms and Concepts / Trading
- Terms and Concepts / Trusts and Estates
Transcript
- 00:00
Finance allah shmoop What is a merchant account All right
- 00:07
You sell earrings at the mall hearings for years and
- 00:10
you know other regions private ones You're a merchant You
- 00:14
take credit cards visa amex mastercard A customer pays for
- 00:18
her ear ring with a visa card charge for three
Full Transcript
- 00:22
hundred bucks Alright Well where does that money go How
- 00:24
does it get there Well because you pierce on earth
- 00:28
have a merchant account you take her little mag strip
- 00:32
thing Me on her card with all our information has
- 00:35
everything on it like her name bank number address phone
- 00:39
a whole bunch of other codes on it You swipe
- 00:42
it in your little reader and voila Three hundred boxes
- 00:45
taken from her account with visa taking about five bucks
- 00:49
of this transaction for the pleasure or pain of doing
- 00:52
it And then visa room it's two hundred ninety five
- 00:55
dollars into your bank of america merchant account that's How
- 01:00
you got paid So who gets a merchant account Do
- 01:04
you need a fundamental genetic resistance teo Kryptonite to be
- 01:08
granted such lofty status No not at all Generally speaking
- 01:13
all you need is a few grand in a basic
- 01:15
bank account Reasonable credit scores like above six hundred ish
- 01:19
And you have to be willing to fork over some
- 01:21
minimum initial amount as well as minimum monthly amount So
- 01:25
it's still worth it for the credit card companies and
- 01:28
banks to continue to be in business with you like
- 01:30
there's A basic monthly fee for most of them Well
- 01:33
how do you lose your merchant account status Well you
- 01:36
offer lousy product to your customers who demand their money
- 01:39
back through charge cards in what's called a charged back
- 01:43
like they dispute the charge and make the credit card
- 01:46
company go after you for the refund And that then
- 01:49
violates some minimum few percent floor from a credit card
- 01:53
taking perspective and well then visa mastercard amex will They
- 01:56
could just stop issuing you a credit taken stopped taking
- 02:00
customers cards from you and then you have to only
- 02:03
take cash You're screwed But as long as you follow
- 02:05
the rules pay your bills and continue to attract creative
- 02:08
people who want piercings in you know interesting places like
- 02:12
the mall Then you'll remain in business for a long
- 02:14
as you want more or less and well so that's
- 02:17
It You're one of the few the proud the merchants
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