Merchant Account
Category: payment
A bank account that allows businesses to accept and process card payments.
A merchant account is a type of bank account that allows businesses to accept credit card and debit card payments. In e-commerce, merchant accounts work with payment gateways to process online transactions. Some payment services (like Stripe and PayPal) bundle merchant account functionality with payment gateway services, while traditional merchant accounts require separate setup with a bank or acquirer.
Examples
- • Stripe provides an aggregated merchant account model where sellers don't need a dedicated merchant account from a bank.
- • High-volume e-commerce sellers may benefit from a dedicated merchant account with lower per-transaction fees than aggregated services.
- • Merchant account providers assess seller risk, and high-risk products (e.g., electronics, supplements) may face higher fees or account restrictions.