Merchants' Accounts Law and Legal Definition
A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. Such accounts must be current, mutual accounts between merchants showing debits and credits of the merchandise transactions. A merchant account also serves as an agreement between a retailer, a merchant bank and payment processor for the settlement of credit or debit card transactions.
In the English statute of limitations there is an exception that the provisions of this statute shall not apply to such accounts as concern trade and merchandise between merchant and merchant, their factors or servants. This exception has been applied to actions of assumpsit (one who undertakes the liability in a breach of contract) as well as to actions of account. To bring a case within this exception, the merchant must retain an account. Such an account must be open, current, and must relate to concern trade.
