Merchant account

A merchant account is a type of bank account that allows a business (known as a merchant) to accept payments by debit or . A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions. In some cases, a payment processor, payment service provider, independent sales organization (ISO), or member service provider (MSP) acts as an intermediary between the merchant and the acquiring bank.

Whether a merchant enters into an agreement directly with an acquiring bank or through an aggregator, the agreement contractually binds the merchant to obey the operating regulations established by the card associations (such as Visa, Mastercard, Discover Card, and American Express).

A high-risk merchant account is a specialized merchant account for businesses deemed to carry a higher financial or legal risk by acquiring banks and payment processors. These accounts typically incur higher transaction fees, larger rolling reserves, or stricter settlement terms. Industries operating under high-risk merchant accounts include the adult industry, online travel agencies, foreign exchange (forex) trading, gambling, and multi-level marketing.