A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards.
So a merchant account is an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions.
Who is a merchant in a credit card transaction?
A cardholder begins a credit card transaction by presenting his or her card to a merchant as payment for goods or services. The merchant uses their credit card machine, software or gateway to transmit the cardholder’s information and the details of the transaction to their acquiring bank, or the bank’s processor.
What is a merchant?
A merchant is a company or individual who sells a service or goods. An ecommerce merchant is someone who sells exclusively over the Internet. A merchant will sell the goods to the customer for a profit, and by law, will have a duty of care to the customer due to the knowledge of the products he has for sale.
What is an ISO Merchant?
Simply speaking, an ISO – or Independent Sales Organization – is a third party payment processing company that is authorized to handle merchant accounts for businesses.
What is merchant payment processing?
A payment processor is a company (often a third party) appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks.