| By :
Patricia Strasser
The difference between the two accounts namely merchant and regular checking is basically on their purpose. The former allows merchant to increase their profit through online transactions using credit and debit cards while, the latter is where the sales will be transferred after a transaction has been cleared, which is usually 2 - 3 days. It also has several advantages as compared to any other types. Since there are several banking options, you need to be familiarized on the various types to be able to decide on what is best and most suitable for your business. In order for merchants to maximize their sales, credit cards must be accepted since this is the most preferable method of payment by most shoppers. This is safer since you can shop anytime without having to bring large amount of cash, which can be very inviting to thieves. It is therefore recommended that you open the following namely: Merchant account This is intended to increase revenues through acceptance of credit and debit cards. It is a bit complex since it involves interplay among three entities namely: merchant, gateway processor, and issuing bank. Before one gets approved, you need to have an existing regular checking account where your sales will be deposited after they are credited. This may take about 2 - 3 working days to clear transaction before sales can be transferred to your personal funds. Regular checking account Check option is also known as Negotiable Order of Withdrawal, which has several types namely: regular, free, student/senior, second-chance, joint, money market, lifeline, express, interest-bearing, and online. The most common and advisable type that is ideal for day-to-day transaction takes the form of a regular check. It has a low maintaining balance as well as monthly fee in case it falls below than what is required. Most of the time, it offers no interest; however, it depends on the bank you are dealing with. The interest rate varies depending on the annual interest and amount of principal funds. Advantages - Ideal for those who issue check on a regular basis such as paying of bills - Permits transaction anytime, either deposit or withdrawal - Guarantees safe transaction - Highly convenient and handy - Allows tracking of transactions Relationship between the two types If you are a merchant who aspires to increase your sales through online business dealing, the two should co-exist; merchant and checking accounts. Although regular check is not the only type that is acceptable, ideally it is preferable if you hold a large amount of funds. Most of these types are insured and offer higher interest as compared to any other type. To make your business more profitable, you must maximize your sales by accepting various forms of payment. Having a merchant account will not only increase your profit, but it will also allow accessibility and convenience on the part of the customers.
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