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Business glossary

Merchant account

Definition

An account arrangement that enables a business to accept and settle card payments.

Pocket Invoice Editorial Team · Updated

Example

A business accepting card payments uses a merchant arrangement through a bank or payment provider. Gross card receipts, provider fees, refunds and settlement amounts can differ.

How it differs from related terms

The merchant arrangement supports card acceptance and settlement. A gateway transmits payment information, and a business bank account receives funds. Some providers combine these services, so examine the actual settlement statement.

Frequently asked questions

What is an example of merchant account?

A business accepting card payments uses a merchant arrangement through a bank or payment provider. Gross card receipts, provider fees, refunds and settlement amounts can differ.

How should merchant account be interpreted?

The merchant arrangement supports card acceptance and settlement. A gateway transmits payment information, and a business bank account receives funds. Some providers combine these services, so examine the actual settlement statement.