What is a merchant account?
Every payment made with a credit card means that there is a transfer of money to a merchant account. The merchant, in this case that means you, holds this account at a bank. The merchant has responsibility for the transactions. And each bank has its own terms of service that merchants must follow. If you want to accept credit card payments through your ecommerce site or take credit card swipes on your smartphone, you will need either a merchant account of your own or the services of a third‐party payment processor. PayPal is an example of a third party payment processor.