If you want to accept credit card payments, you’ve probably heard the term “merchant account.” But what exactly is it—and do you really need one?
What Is a Merchant Account?
A merchant account is a special type of bank account that allows your business to accept and process debit and credit card payments. When a customer pays, the funds are first deposited into your merchant account. From there, they’re transferred to your business checking account—often within 1–2 business days.
Why Can’t You Just Use PayPal or Square?
Services like PayPal and Square are aggregators—meaning your business is lumped together with others under a shared merchant account. While easy to set up, they often come with higher fees, less control, and more risk of account freezes.
5 Reasons to Get Your Own Merchant Account
1. Lower Processing Fees
With First National Processing, you get transparent pricing and lower fees tailored to your business volume—not flat rates across the board.
2. More Flexibility
You can customize your POS system, payment gateway, and processing features to fit your business—not someone else’s.
3. Greater Account Stability
Merchant accounts are less likely to freeze or hold funds compared to third-party processors.
4. Better Customer Support
What Is a Merchant Account and Do You Really Need One?
If you want to accept credit card payments for your business, you’ve probably heard the term “merchant account.” But what exactly does it entail, and why might your business need one?
What Is a Merchant Account?
A merchant account is a specialized type of bank account designed specifically to allow businesses to accept and process debit and credit card payments. When a customer makes a payment, funds are initially deposited into this merchant account. After processing, the funds are then transferred directly into your business checking account, typically within 1–2 business days.
Why Can’t You Just Use PayPal or Square?
Services such as PayPal, Square, and Stripe function as payment aggregators. These platforms combine your business transactions with those of many other businesses under a shared merchant account. While aggregator services are convenient and quick to set up, they usually have drawbacks including higher transaction fees, less flexibility, increased potential for fund holds or account freezes, and limited customer support.
Get Started with First National Processing
We make it easy to set up your own merchant account with fast approval, transparent pricing, and next-day funding. Our team walks you through every step.