A school representative called me yesterday and explained that she only needs to take donations on behalf of the school for four months out of the year (the first two consecutive months of the school term and the last two consecutive months).  The representative was happy to hear that she could open a seasonal merchant account -- one where she does not have to pay monthly charges for the months when the account is dormant.

Indeed, opening a seasonal account saves money as the owner is not entailed to pay any credit card processing fees -- variable or fixed -- when the account is not operational.  Of course, when such are fees are not applicable, the merchant will be unable to accept credit cards.  But designating oneself as a "seasonal business owner" eliminates the need to apply for a merchant account one year and reapply the next.  The account is in the books and can be reactivated and deactivated according.

It's always important that the merchant call customer service to ensure that the account will be opened or closed for a specified time frame.  (The merchant should give ample time to the processor, say at least two weeks, for activation or deactivation to go smoothly.)  Many processors will want written confirmation of the merchant's wishes and intentions to either gain back credit card processing capability or shut all systems down. 

Receiving the designation of seasonal may not always be a done deal, however.  Some processors will only allow a merchant a seasonal status if their business is deemed seasonal in nature.  For example, a business owner who sells fireworks should be able to secure a seasonal merchant account.  However, an owner who sells beauty products may have difficulty receiving this type of classification. 

Other processors will allow any business to be categorized seasonal and comply with all merchants' requests to process for only part of the year.  But few merchants will be allowed to have their accounts go on and off like a light switch.  It's best if the merchant intends to have consecutive months of processing activity and consecutive months of no processing activity. 

By the way, if the merchant sporadically accepts credit cards throughout the year, it does not seem worth the time and expense to declare seasonal status -- even if there are some lean months of few, if any, transactions.  What happens if the merchant is desperate to accept a particular transaction?  He/she has to contact the merchant account provider and it may take up to two weeks to accommodate the processing of that credit card.

Still, seasonal merchant accounts offer value to those who need not pay full-time for part-time credit card processing.  Those who sell crafts at certain shows now and then, those who own summer or winter businesses, and those who are entrepreneurs catering to a certain audience at certain times of the year, all would benefit to mark, "Yes," on the application, referring to the question, "Does merchant conduct business seasonally