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.jpgWhen to Open a Third-party Merchant Account

When to Open a Third-party Merchant Account

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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.

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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.

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