What Is a Merchant Account?
Before you can accept a single credit card payment, you need a merchant account. But what exactly is it — and how is it different from your regular business bank account?
What Is a Merchant Account?
A merchant account is a specialized commercial bank account that allows businesses to accept credit and debit card payments. It functions as a holding account — funds from card transactions are deposited here first, then transferred to your regular business bank account on a set schedule (typically next-day with GoPayhawk).
It's not a traditional bank account. It's a relationship with an acquiring bank — in GoPayhawk's case, Elavon (a U.S. Bank subsidiary) — that advances the value of your daily card transactions on your behalf.
What Is a Merchant Deposit?
A merchant deposit is the process by which your payment processor takes the total of all completed card transactions from a given day and deposits those funds into your merchant account. With next-day funding, this happens overnight — sales you process today are available in your account tomorrow morning.
Will a Merchant Account Cost Me Money?
Yes — merchant accounts come with fees. The key ones:
- Transaction fees: A percentage of each sale plus a flat per-transaction amount
- Monthly service fee: A flat recurring charge for account maintenance
- Chargeback fees: $20–$100 per dispute filed against you
- PCI compliance fee: A small monthly charge — should be minimal if you maintain compliance
These fees are typically more than offset by the increased sales from accepting cards. Businesses that add card acceptance typically see immediate revenue growth.
What Is a Merchant Statement?
Your merchant statement is a monthly document summarizing all card transactions processed through your account — volume, transaction count, fees charged by category, and your net deposit. Learning to read it is how you know whether you're getting a fair deal. See How to Read Your Merchant Statement.
What Is a Merchant Processor?
A merchant processor is the company that handles the technical and financial routing of your card transactions — between your terminal or gateway, the card networks (Visa, Mastercard, Amex, Discover), and the issuing banks. GoPayhawk is your processor, and Elavon is the acquiring bank behind the relationship.
What Is a Merchant Terminal?
A merchant terminal is the device your customers use to pay — the countertop unit with the card reader, keypad, and display. Modern terminals accept chip (EMV), tap (NFC contactless), and swipe. GoPayhawk's terminal lineup covers everything from compact mobile readers to full POS systems.
What Is PCI Compliance and Why Do You Need It?
PCI DSS is the 12-standard security framework all card-accepting businesses must follow. Non-compliance carries fines up to $100,000/month. GoPayhawk handles the technical compliance requirements and guides you through the annual questionnaire.
How to Get a Merchant Account
With GoPayhawk, the process is straightforward:
- Submit a short application
- Provide your existing business banking information
- Receive approval — typically within 24 hours
- GoPayhawk handles the setup and account activation
Ready to get started? Contact GoPayhawk or submit your current statement if you're switching from an existing processor.
