A seasonal merchant account is an account that is only open for certain months of the year. The seasonal merchant account is set up to functional only in the months that the business is operational each year. For example a golf course in Colorado may only be open from May to September. Given this scenario it is advantageous to have the merchant account suspend each year from October to April saving the business owner the fees associated with keeping the account open in the months where revenue is not being generated.
Other examples of seasonal businesses:
- Christmas Stores
- Sumer Youth Camps
- Alpine Ski Hills
- Fireworks Stores
- Ice Cream Shops
- Lawn Care and Landscaping
- Trade Shows
When setting up a seasonal merchant account you will indicate which months you prefer to have the account open and closed. During the months in which the account is closed your business will not incur any fees related to the account unless there are annual fees that are set to be billed in a month that the account is not active. Make sure to ask for full disclosure of all the fees involved with the account.
Some processors will also allow for the business to turn the account on and off numerous times each year. This is especially helpful for businesses that need a merchant account for trade shows that happen multiple times a year.