If you're thinking of going into business, or you've decided to move your current business from hobby to full time status, you'll need to know exactly what a merchant account is, and how a good merchant account can help your business flourish.

A merchant account differs from a regular bank account as it allows business owners to accept credit and debit card payments and electronic payment.

This can be an invaluable resource for a business owner, as customers are only likely to do business if they can do it in a way that is convenient to them. No customers like the hassle of arranging to pay for products by check, and today's consumers expect to be able to make instant electronic payment for most goods and services.

A good merchant account will allow customers to use every credit or debit card on the market. While many inferior merchant accounts will only accept a limited range of cards, the best will take everything from Visa to American Express ? and even, occasionally, gift vouchers.

One of the drawbacks of having a merchant account, even a good one, is that there are several costs involved. The majority of merchant accounts will charge transaction fees, authorisation fees and a monthly charge.

The business owner will have to cover these costs, or add them into the cost of the goods and services he offers, for the privilege of using a merchant account. In order to minimise these costs it is important that a business owner hunts for a good merchant account instead of settling for the first one he finds.