A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. An Internet merchant account is a merchant account that allows businesses to accept debit or credit card payments over the Internet.
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, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement. Whether a merchant enters into a merchant 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.