40.7k views
4 votes
A merchant account is a company that provides a network to process encrypted transactions from a merchant's Web site.

a) True
b) False

User MISJHA
by
8.3k points

1 Answer

4 votes

Answer:

A merchant account is falsely described as a company; it is actually a type of bank account that enables businesses to accept card transactions, working with a payment processor or gateway to handle transactions.

Step-by-step explanation:

The statement in question is false. A merchant account is not a company, but rather a type of bank account that allows businesses to accept payments in debit or credit card transactions. The role of a merchant account is to hold funds between the time a card transaction is made and when it settles into the business's bank account. It is part of a payment processing arrangement, but the network that provides the ability to process encrypted transactions is typically managed by a payment processor or payment gateway, which may or may not be part of the same company offering the merchant account.

User Korrawit
by
8.2k points

No related questions found