A merchant account is an acquiring arrangement that enables a business to accept card payments and receive settled transaction proceeds. It is not necessarily a general-purpose bank account the merchant can use directly.
How does a merchant account work?
Card transactions are submitted under the merchant’s acquiring setup, cleared through the network and settled by the acquirer or payment provider after fees, reserves and adjustments.
Who provides it?
An acquiring bank, payment processor or payment service provider may establish or sponsor the arrangement.
What is reviewed during onboarding?
Providers may assess legal identity, ownership, products, countries, transaction profile, chargeback risk, delivery model and financial condition.
Which terms matter?
Review pricing, settlement timing, reserves, limits, supported methods, descriptor, dispute handling, termination and treatment of pending funds.
Merchant account versus payment gateway
The merchant account supports acquiring and settlement. A gateway securely transmits payment information; one provider may bundle both.
