Do you need a business account to take card payments?

Do You Need a Business Account to Take Card Payments?

Businesses can accept card payments through a merchant account with a service provider. Alternatively, payment facilitator services offer a merchant account-free option for accepting credit cards.

Merchant Accounts

A merchant account is a type of bank account that allows businesses to accept card payments. To open a merchant account, you will need to provide the service provider with information about your business, including your business name, address, and tax ID number. You will also need to agree to the terms and conditions of the merchant account agreement.

Once you have opened a merchant account, you will be able to accept card payments in person, online, or over the phone. You will also be able to set up recurring payments and accept payments from international customers.

Payment Facilitator Services

Payment facilitator services offer a merchant account-free option for accepting credit cards. With a payment facilitator service, you will not need to open a separate merchant account. Instead, you will simply sign up for the payment facilitator’s service and start accepting payments.

Payment facilitator services typically charge a monthly fee and a per-transaction fee. The monthly fee is typically around $20-$30, and the per-transaction fee is typically around 2.9% + $0.30.

Which Option Is Right for You?

The best option for your business will depend on your specific needs. If you need to accept card payments in person, online, or over the phone, then you will need a merchant account. If you only need to accept card payments online, then you may be able to use a payment facilitator service.

Here is a table that compares the two options:

Conclusion

Whether you need a business account to take card payments depends on your specific needs. If you need to accept card payments in person, online, or over the phone, then you will need a merchant account. If you only need to accept card payments online, then you may be able to use a payment facilitator service.