Understanding the Difference Between Traditional and Third-Party Merchant Accounts

A major component of taking part in merchant affiliate programs is ensuring that you become an expert in certain areas you never thought you’d explore as a web developer. One of the most fundamental aspects of becoming a well-versed merchant account reseller has nothing to do with anything as complex as understanding how merchant account fees are assessed. It’s as basic as knowing the difference between a traditional merchant account and a third-party merchant account.

Traditional Merchant Accounts
A traditional merchant account is established directly between the merchant and the merchant’s bank. Every time a credit card transaction is processed, the funds are deposited directly into the merchant’s bank account—and likewise, any time a refund is processed, it’s debited from the same account.

Third-Party Merchant Accounts
A third-party merchant account is the type offered by Merchant Focus, and is typically associated with a lot less legwork (and a lot less voluminous paperwork) than what tends to come with traditional merchant accounts. A third-party merchant account provider acts as intermediary between merchant and credit card company in order to offer clients lower credit card processing fees. Online merchants often require the assistance of web developers to become fully integrated.

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Traditional merchant accounts are established directly between merchant and bank, whereas third-party accounts are provided by an intermediary company.
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