A third-party merchant account is another party that handles your credit card transactions. In this arrangement, when you accept a credit card from a customer, the funds are transferred from the customer’s account to the third-party merchant’s account. Later, the funds are transferred to your account electronically. Conversely, if you have your own merchant account, the funds from every credit card transaction are sent to your merchant account and then transferred to your chequing account. Having your own merchant account can be expensive, especially if you process a relatively small or moderate volume of transactions. Because of that, you may prefer to have a third-party merchant account. Third-party merchant accounts generally provide you with the equipment and security measures you need to accept credit cards, which can simplify the process as well.