Part 2
Open A Merchant Account
A merchant account is an account that allows you to accept credit and debit card payments. In the past, you could only get a merchant account via opening such an account at a bank. However, you now have other options besides the traditional banks, including PayPal and Stripe. No matter which option(s) you choose to have a merchant account, all merchant accounts provide you with the ability to process credit and debit card transactions. For each transaction that is processed, a percentage of the amount will be taken as compensation, known as a transaction fee.
This is often in the 2–3% range, depending on the company providing you with the merchant account and sometimes even the amount of the transaction itself. PayPal and Stripe are two companies that are really merchant account “aggregators.” Unlike merchant accounts with a bank, PayPal and Stripe allow virtually anyone to have the ability to process credit and debit card transactions, even if their business is brand new and has no history or track record of success.
Conversely, banks need to verify your business plan and know you are a legitimate business before they will consider giving you a merchant account and the ability to process credit and debit card payments. (In fact, you need a business bank account to get a merchant…
