What is a merchant account?
A merchant account is a type of bank account which allows businesses to accept and process electronic payments.
How does a merchant account work?
Funds from customer transactions are first deposited into the merchant account before being transferred to the business’s main bank account.
Who provides merchant accounts?
Acquiring banks or payment service providers provide merchant accounts to businesses.
Why is a merchant account necessary?
It enables card payment acceptance and ensures proper handling of transaction funds and settlement.
What factors affect merchant account approval?
Factors include business type, risk level, transaction volume, and financial history.