Merchant Account Examples for a US Small Business
The phrase sounds abstract until you see it in use. Here are four everyday setups, plus what each processor's own page says about pricing and funding.
A customer taps a card, the sale is approved, and the money reaches your bank after a wait that varies by provider. A merchant account is the account in the middle of that trip. Merchant account examples make the idea easy to grasp. Here are a few drawn from how US small businesses actually take cards.
What a merchant account is, in one sentence
Authorize.net's pricing page says a merchant account is a type of bank account that lets businesses accept payments by debit or credit cards. The same page says you must have a merchant account in order to accept credit cards. It also says the account is like a credit line. It holds funds from card sales. It deposits them into your business bank account. It can also issue refunds.
Example 1: a dedicated merchant account behind a payment gateway
Picture a plumbing supply shop that takes orders by phone and through its website. Its card sales land in an account opened in the shop's own name. Authorize.net's pricing page says it uses a dedicated merchant account rather than pooling merchants together the way PayPal does. The page also says funds follow a predictable path with a low risk of holds or unexpected delays.
Example 2: an aggregator that pools merchants together
Now picture a weekend craft vendor. She sells at six fairs a year and has no shop. Authorize.net's pricing page names PayPal as the pooled example. It does this when it describes its own dedicated model.
Example 3: an all-in-one plan that bundles the account and the gateway
Picture a yoga studio that bills members each month. It wants one company to handle the account and the web checkout. Authorize.net's page says its All-in-One plan combines a merchant account and a gateway. Authorize.net's page also says its all-in-one solution includes help providing you with a merchant account.
Example 4: a gateway-only setup connected to an existing merchant account
Picture a bike shop that already has a merchant account through its bank. It only needs web checkout. Authorize.net's page says its gateway only option allows you to connect to any merchant account provider. The page also says you can update your gateway with parameters from your merchant provider. This works if you have an existing merchant account. The same page has one warning. An account that is not solely owned cannot be used with the Authorize.net gateway.
What each processor's own page says about pricing and payouts
Authorize.net's page says its All-in-One plan is $25 per month plus 2.9% plus 30 cents per transaction. Its Gateway Only plan is $25 per month plus 10 cents per transaction and a 10 cent daily batch fee. The page says its plans start at $25 per month.
Stripe's pricing page says payouts on its standard schedule are free. You can get transfers on a rolling basis, weekly, or monthly.
Square's pricing page says you can transfer funds to an external bank account the next business day for free or instantly for a fee.
Clover's pricing page says Rapid Deposit gets funds within minutes of a credit card sale for a 1.75% fee.
Published prices change. Confirm each number on the processor's own page before you sign up.
What the monthly fee covers, per the processor's page
Authorize.net's page says the monthly fee covers included features such as fraud protection, recurring billing, digital invoicing, customer data management, support, and AI-powered reporting. Its pricing page also offers Automated Recurring Billing for subscriptions, retainers, or payment plans. It also lists a Customer Information Manager, which stores payment details for a faster checkout.
How funding works and why timelines vary
Once a sale clears, the money has to reach your bank. Authorize.net's page says the Merchant Service Provider facilitates transferring funds to your bank account. That provider handles the transfer. So the page says the exact deposit timeline may vary. Authorize.net's page says the industry average funding period is between three to five business days.
Some processors' pages list a fee when you want faster payouts. Stripe's pricing page says Instant Payouts cost 1.5% of Instant Payouts volume with a minimum fee of 50¢. Square's pricing page says Instant Payouts services require a Square Checking account. Payout limits may apply. These limits include limits on amounts. Square's page says some orders are not paid out instantly. If an order is not paid out instantly, it will arrive on your regular deposit schedule. You can read more about paying for speed in payout timing and instant fees.
Questions to ask before you sign up
Ask how the account is structured, dedicated or pooled. Ask what the monthly fee covers and what it leaves out. Ask when money lands and what a faster option costs. Ask about contracts. Authorize.net's pricing page says it has no contract and no early termination fees. You can cancel your gateway subscription at any time without penalty.
Approval also varies. Authorize.net's page says merchant account approval depends on factors including industry, credit history and responsiveness. Its pricing page says an underwriter reviews your industry when you apply. The underwriter also looks at your processing history. They check your personal credit and business creditworthiness too.
To see how a single sale plays out across these price sheets, walk through a forty dollar sale at the counter.