FAQ's > What is a merchant account?
A merchant account is kind of bank account that lets you accept credit cards. It is possible that your local bank offers merchant accounts, but it is generally a good idea to shop around for the best rate. The main fees involved in merchant accounts include the discount rate (a percentage of each transaction), a monthly statement fee, a chargeback fee, and sometimes an early cancellation fee if you sign a contract. Discount rates are higher for online sales than in-person sales, and you must tell your issuing bank that you are using your account for online sales as some do not underwrite online merchants.
In order to accept credit cards through your web site, you will also need a payment gateway. These are often bundled with online merchant accounts.
