Fast Quick Answer
  • Business
    How Cosmetologists and Estheticians Differ
  • Business
    The Top 5 Payroll Software Systems For A Small Business
  • Business
    Finding the Best Small Business Online Accounting Systems
Fast Quick Answer
    • Health
      • Symptoms Of Constipation

        Symptoms Of Constipation

      • Treatment of Lupus

        Treatment of Lupus

      • Medications to Treat Ulcerative Colitis

        Medications to Treat Ulcerative Colitis

      • 4 Natural Remedies For Treating Gum Disease

        4 Natural Remedies For Treating Gum Disease

      • Dry Eyes? Here Are Some Natural Remedies

        Dry Eyes? Here Are Some Natural Remedies

      • Tips for People Living with Bipolar Disorders

        Tips for People Living with Bipolar Disorders

    • Medical
      • How to Cope After a Miscarriage

        How to Cope After a Miscarriage

      • Signs and Symptoms of Renal Cell Carcinoma

        Signs and Symptoms of Renal Cell Carcinoma

      • The Types of Breast Cancer

        The Types of Breast Cancer

      • How Kidney Cancer is Diagnosed

        How Kidney Cancer is Diagnosed

      • Your Guide To Metastatic Melanoma

        Your Guide To Metastatic Melanoma

      • What Is Dialysis?

        What Is Dialysis?

    • Business
      • All-Natural Pest Control Options You Must Try

        All-Natural Pest Control Options You Must Try

      • 5 Important Questions to Ask Before you Buy Business Insurance

        5 Important Questions to Ask Before you Buy Business Insurance

      • When Do You Need an Accident Attorney?

        When Do You Need an Accident Attorney?

      • 5 Questions You Should Ask Your Accident Lawyer

        5 Questions You Should Ask Your Accident Lawyer

      • Graphic Design Myths You Should Stop Believing

        Graphic Design Myths You Should Stop Believing

      • Finding the Best Small Business Online Accounting Systems

        Finding the Best Small Business Online Accounting Systems

    • Finance
      • Should you Pay Off your Installment Loan Early?

        Should you Pay Off your Installment Loan Early?

      • Thinking about Investing in a Company – You Need to…

        Thinking about Investing in a Company – You Need to…

      • The Truth About Advance Payday Loans

        The Truth About Advance Payday Loans

      • When Should You Start Saving For Your Retirement?

        When Should You Start Saving For Your Retirement?

      • Student Loan Forgiveness: Are You Eligible?

        Student Loan Forgiveness: Are You Eligible?

      • How To Get A Small Business Grant

        How To Get A Small Business Grant

    • Tech
      • Why your Business Needs Strong Firewall Network Security

        Why your Business Needs Strong Firewall Network Security

      • Best Business Cable TV Options

        Best Business Cable TV Options

      • How to Choose a Wireless Internet Provider for your Business

        How to Choose a Wireless Internet Provider for your Business

      • 4 Reasons to Switch to the Samsung Galaxy S10

        4 Reasons to Switch to the Samsung Galaxy S10

      • Are Self-Driving Cars Safe?

        Are Self-Driving Cars Safe?

      • Things You Need to Know About Driver’s Education

        Things You Need to Know About Driver’s Education

    • Auto
      • Simple Ways to Increase your Gas Mileage

        Simple Ways to Increase your Gas Mileage

      • Look Out for These Problems Before Buying a Used Car

        Look Out for These Problems Before Buying a Used Car

      • The Top 5 New SUVs

        The Top 5 New SUVs

      • 5 Popular Midsize Cars for College Students

        5 Popular Midsize Cars for College Students

      • Should you Refinance your Auto Loan?

        Should you Refinance your Auto Loan?

      • 10 Best Minivans For 2016

        10 Best Minivans For 2016

      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