2016-12-14 00:00:00Payment ProcessingEnglishLearn what third-party merchant accounts are, and review when you may want to open a third-party merchant account.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Small-business-owner-accesses-third-party-merchant-account-on-tablet-at-bar-with-customer.jpghttps://quickbooks.intuit.com/ca/resources/payment-processing/when-open-third-party-merchant-account/When to Open a Third-party Merchant Account

When to Open a Third-party Merchant Account

0 min read

A third-party merchant account is another party that handles your credit card transactions. In this arrangement, when you accept a credit card from a customer, the funds are transferred from the customer’s account to the third-party merchant’s account. Later, the funds are transferred to your account electronically. Conversely, if you have your own merchant account, the funds from every credit card transaction are sent to your merchant account and then transferred to your chequing account. Having your own merchant account can be expensive, especially if you process a relatively small or moderate volume of transactions. Because of that, you may prefer to have a third-party merchant account. Third-party merchant accounts generally provide you with the equipment and security measures you need to accept credit cards, which can simplify the process as well.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Should Your Business Have a Holiday Party?

The holiday spirit can be contagious and may inspire you to throw…

Read more

Should You Outsource Benefits Administration?

Offering your employees benefits is a wonderful way to attract top-quality workers.…

Read more

Sip-and-Paint: Capitalizing on a One-of-a-Kind Social Niche Product

Sip-and-paint events are becoming popular throughout the United States and Canada as…

Read more