Simpler Smarter Savings

Access Account

Every day, more and more people carry plastic versus cash in their wallets. They depend upon merchants to provide credit card processing and instant accessibility to their funds. Today’s credit card processing for a merchant account is like one fast-paced, continually flowing transaction. The only way to make that work efficiently, and to keep this modern commerce running smoothly, is for merchants and customers to rely heavily on access accounts.

What is an access account?

The term “access account” refers to any type of depository account that is readily available for the member or owner of the account. Another term used in the place of accessible is liquid. Examples of this type of account are demand deposit accounts (checking), negotiable order of withdrawal accounts (NOW), and savings accounts. Individual Retirement Arrangements, or IRAs, and 401Ks are examples of non-liquid accounts due to their lack of quick accessibility. A merchant account holder can make deposits or withdrawals directly from access accounts quickly and generally without penalty.

How do access accounts differ from one another?

Each different type of access account follows different stipulations. For example, some have check writing capability, some are interest bearing, some are restricted to six or less withdrawals per month – according to Regulation D established by the Federal Reserve Act. All access accounts contain a unique account number established by the financial institution and the ABA number or transit routing number. This routing number acts as a tracker for electronic deposits and withdrawals between access accounts.

Who can access them?

This type of account may be owned and accessed by a single individual; however, others may also access it via stored value cards (SVCs). Stored value cards are pre-loaded cards with a set monetary value. They contain a micro-computer chip that enables the merchant account to conduct financial transactions and store digital currency. Unlike debit cards, the money used in SVCs is not connected to a physical financial institution, but is stored directly on the card. Also, these cards are anonymous, thereby allowing multiple individuals to access the same merchant account. They may be used during any credit card processing due to the binary code embedded in the SVC.