What is a merchant account and why does your business need one?

If you’re running an online business and accepting payments, you’ve probably heard about merchant accounts. But what exactly are they, and why do you need one?

Let’s break it down.

A merchant account is a special type of account that lets businesses accept card payments, alternative payment methods (APMs), and more. It’s different from a regular bank account because the money from customer transactions goes there first before being transferred to your business account.

How does it actually work?

A customer pays for your product or service using their card.

The payment is processed through a payment gateway and sent to the acquiring bank.

The bank verifies the transaction and deposits the money into your merchant account.

After processing, the funds get transferred to your business bank account.

Why does this matter?

You can accept online payments seamlessly.

Customers trust businesses with smooth and secure payment options.

You get more flexibility in handling transactions, including cascading payments.

How do you choose the right Merchant account?

Look at the fees, payout speed, supported countries, and how well it integrates with your payment gateway.

Looking for a reliable merchant account provider? We help businesses get the right payment solutions. Click here to access our application form - and we’ll get in touch with you.