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The Curious Bag
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Credit card merchants are businesses that take payments made with major credit cards, such as MasterCard, Visa, American Express and Discover. The merchant must have a merchant services account through a merchant service provider who processes these payments and deposits the money in the business' bank account.
Merchants Need Not Accept Every Type of Credit Card
Not all merchants accept all credit cards. MasterCard and Visa are among the most common because the fees associated with accepting them are typically lower than American Express and Discover cards.
Transaction Fee
Merchants pay a transaction fee for each payment processed. Often, this is a relatively small amount, around 30 cents.
Discount Rate
In addition to the transaction fee, a merchant will need to pay a discount rate that is calculated as a percentage of the payment processed. For instance, if a discount rate is 1.9 percent on a $100 sale, the merchant will pay $1.90 plus the transaction fee for the sale.
Deposits
Deposits for sales charged to credit cards are typically deposited directly into the merchant's bank account within one to three days after the sale.
Payments for Fees
Payments for transaction fees, discount rates and monthly account fees are usually debited from the same bank account the deposits are made to.
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