A merchant account is a type of account provided by an acquiring bank or payment provider that allows a business to accept debit and credit card payments and receive the money after settlement.
Why it matters
Card payments are first held and cleared through the card networks before reaching the seller. The merchant account is where that process ends. Some providers bundle one for you, while others require a separate application with checks on your business. Many small businesses use payment facilitators that let them accept cards without a dedicated account, trading some control and fee flexibility for faster setup.
Example
A store sells 1,000 USD in a day. The processor deducts its fees, for example a percentage plus a fixed amount per transaction, and settles the balance to the business bank account after the settlement period set by the provider.
Common mistakes
- Mixing it up with the payment gateway, which only transmits the data.
- Ignoring reserve or rolling-hold terms in the agreement.
- Exceeding the chargeback rate limits set by the provider.
Related
Get notified when this term updates
Plus occasional practical tips on uptime and monitoring, nothing else. Unsubscribe anytime.
यह पेज सामान्य जानकारी है, जिसे हमारी संपादकीय टीम ने लिखा है और दस्तावेज़ीकरण बदलने पर अपडेट किया जाता है। सर्वर और प्रदाता अलग-अलग होते हैं, इसलिए बदलाव पहले सुरक्षित तरीके से जाँचें। देखें: संपादकीय नीति और अस्वीकरण.