What is Merchant Account and How to Get It?
A merchant account is a type of bank account that allows companies and businesses to easily accept payments (local or international) in multiple ways, generally debit, credit cards. The merchant account can be opened under an agreement between an acceptor (card payment acceptor) and a merchant acquiring bank for the settlement of payment of the card transactions. Also, in some cases a payment processor, ISO (independent sales organization), or MSP (member service provider) is also a party to the account agreement. When any business enters into a merchant account agreement directly with a selected acquiring bank or through an aggregator, the account opening agreement contractually binds the merchant to confirm and obey the operational laws established by the debit and credit card associations.
Almost all merchant account service providers generally require the merchant to have an exclusive merchant account with the selected provider, either directly or through a referral partner, like a banks, financial institution, or a B2B financial service firm. All banks within the UK, except for Barclays/Barclaycard, provide merchant services by referring customers to a merchant account service provider.

There is no need of merchant account In the case of mPOS systems, mobile pin entry devices (PED), these are usually connected to a mobile through Bluetooth so use the phone’s wifi or mobile data (GPRS) these could connect with the banks directly. This method doesn’t need a merchant account although the businesses who provide this kind of service can still have a relationship with an acquirer. The cost of payments made through mPOS are considerably a little bit high but it’s more appropriate for businesses that don’t do high volume card transactions. There are sometimes additionally a charge for getting the device from the mPOS system provider.
How to Get A Merchant Account?
If you want to be able to accept payment by credit or debit card, you have to set up a merchant account. There are three things required: a credit card merchant account, a bank account and a way to process payments. Merchant account will allow your customers to make payments via Master Card, Visa Card, American Express and other credit and debit cards, these payments will be transferred to the bank account you designate. You can expect to pay start-up fees, plus monthly and per-transaction fees. Monthly statement fees typically range from 4–20 GBP, and transaction fees typically run from one percent to three percent per purchase. Please check-out https://companycompare.co.uk/merchant-accounts/ for a list of merchant services providers to compare rates and terms.
