What is a Merchant Account?

A Merchant Account is a specialized bank account that allows a business to accept credit and debit card payments. It functions as an intermediary holding account where card transactions are authorized, processed, and then settled into your business bank account.

Merchant Accounts are issued by banks and are subject to Underwriting, ongoing monitoring, and card network rules. Approval and continued use depend on how closely a business’s processing activity aligns with what was reviewed and approved during Underwriting.

A Merchant Account is not the same as a standard business checking account.