Small business that accept credit cards do so through bank “merchant account.” The bank processes credit charges through the business’s merchant account, and then it credits the charge amount less processing fees to the business’s bank account. The merchant account may be processed through a bank different from the business’s primary checking bank.
Creditors holding a judgment against the business may garnish the business’s bank account. Creditors may also garnish a merchant account. If the merchant account is garnished the creditor can get the amount of all credit card charges that are pending and not yet credited to the business’s bank account.
Some business debtors attempt to protect their money from garnishment by moving their bank accounts to new banks or to banks which are immune from writs of garnishment. Debtor businesses also need pay attention to the protection of their merchant accounts.