Fast Quick Answer
  • Business
    How To Make The Most Of Your Black Friday Savings
  • Business
    The 5 Best Business Answering Services
  • Business
    The Pros and Cons of Becoming a Plumber
Fast Quick Answer
    • Health
      • A Guide to Types of Embolisms

        A Guide to Types of Embolisms

      • The 5 Stages of Liver Cirrhosis

        The 5 Stages of Liver Cirrhosis

      • How You Can Use Acupressure To Relieve Constipation

        How You Can Use Acupressure To Relieve Constipation

      • Which Depression Medication is Right for You

        Which Depression Medication is Right for You

      • High Blood Sugar Information

        High Blood Sugar Information

      • 6 Causes of High Cholesterol

        6 Causes of High Cholesterol

    • Medical
      • How does Hormone Therapy Work for Breast Cancer Treatment

        How does Hormone Therapy Work for Breast Cancer Treatment

      • What You Need to Know About Pancreatic Cancer

        What You Need to Know About Pancreatic Cancer

      • 10 Terms To Know About Deep Vein Thrombosis

        10 Terms To Know About Deep Vein Thrombosis

      • Causes and Treatments of COPD

        Causes and Treatments of COPD

      • The 3 Stages of Gum Disease

        The 3 Stages of Gum Disease

      • Living With Hep C

        Living With Hep C

    • Business
      • 5 Plants To Repel Common Garden Pests

        5 Plants To Repel Common Garden Pests

      • Cutting IT Costs for your Small Business

        Cutting IT Costs for your Small Business

      • How to Best Manage Home Renovations

        How to Best Manage Home Renovations

      • Pros and Cons of a Beauty Career

        Pros and Cons of a Beauty Career

      • How to Choose the Best Small Business Internet Providers

        How to Choose the Best Small Business Internet Providers

      • Small Business Payroll Service Review – OnPay

        Small Business Payroll Service Review – OnPay

    • Finance
      • What’s the Best Way to Transfer Money: Online or Cash…

        What’s the Best Way to Transfer Money: Online or Cash…

      • How Can you Calculate your Credit Score?

        How Can you Calculate your Credit Score?

      • Can’t Pay your Taxes? Here’s What you can Do

        Can’t Pay your Taxes? Here’s What you can Do

      • What you Should Always Consider Before Taking Out a Loan

        What you Should Always Consider Before Taking Out a Loan

      • What You Need for a Car Title Loan

        What You Need for a Car Title Loan

      • To Rent Or To Buy: That Is The Question

        To Rent Or To Buy: That Is The Question

    • Tech
      • The Top 5 Home Security Systems

        The Top 5 Home Security Systems

      • Hybrid Cloud Computing Security Service

        Hybrid Cloud Computing Security Service

      • How Video Conferencing can Improve your Business

        How Video Conferencing can Improve your Business

      • Hybrid Cloud Security Solutions for Small Business

        Hybrid Cloud Security Solutions for Small Business

      • Why you Need to Sign up to the Cloud

        Why you Need to Sign up to the Cloud

      • Satellite internet: Beamed to your business

        Satellite internet: Beamed to your business

    • Auto
      • Top 5 Crossover Vehicles With Parking Assist

        Top 5 Crossover Vehicles With Parking Assist

      • 5 Top Crossover SUVs of 2017

        5 Top Crossover SUVs of 2017

      • The Top 5 Minivans With Style

        The Top 5 Minivans With Style

      • The Best Car Insurance Companies of 2016

        The Best Car Insurance Companies of 2016

      • 2016 Safest Cars

        2016 Safest Cars

      • Top 10 Hybrid Cars Under $30,000

        Top 10 Hybrid Cars Under $30,000

      The Difference Between Merchant Accounts and Business Bank Accounts

      by Janet Hamilton

      Are you a new small business owner? You probably have a lot to take care of, and you aren’t looking forward to sorting out your financial issues. However, you’re going to need to take care of two things as soon as possible: your merchant account and your business bank account. If you plan on taking credit and debit cards—and you absolutely should, unless you like turning down customers—you need to open a merchant account. You also need to open a business banking account, which will make your accounting process much easier.

      What is a business bank account?

      A business bank account is used to handle business-related expenses, such as rent and utilities. Business owners ought to open a business checking account that is separate from any personal accounts because it keeps you from mixing your personal funds with your business expenses. The last thing you want is the IRS on your back, and keeping things separate will lessen the chance.

      If you use a business checking account instead of a personal account, you can allow employees to carry out tasks, such as mailing checks and making deposits. Business accounts tend to have better rules and lenient fees for business owners (as opposed to personal accounts), even though banks may change them at any time. While many banks will require a monthly minimum balance, others will allow you to simply maintain a certain amount of deposits or transactions every month. You may be able to maintain your account by enrolling in online banking. By opening a business bank account, you’re making a positive step towards growth: you’ll be able to accept credit and debit card payments, as long as you have a merchant account to process the transactions.

      What is a merchant account?

      When you open a merchant account, you are creating a relationship with a credit card processor. You need a merchant account to process credit card transactions. The credit card processor credits the money from the issuing bank to your business bank account. The credit card processor will provide everything you need to take cards; some will give you a POS terminal for free, some will let you lease it, while others allow you to buy it from them.

      Applying for a merchant account is somewhat different from applying for a business bank account. Processors want to make sure that you’ll be a reliable client and not cause excessive losses. They will examine several things about you and your business. Do you have a low credit score? Is your business in a typically unreliable industry, such as gambling or travel? If so, then you may have difficulty finding someone who will provide you a merchant account. If you’ve ever lost credit card processing services due to breach of contract or fraud, then you’ll definitely be considered a high-risk merchant.

      Posted on May 5, 2023
      Privacy Policy | Terms Of Use | Contact