A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. When a customer pays for a product or service with a credit card, the funds are first deposited into the merchant account and from there eventually transferred to the business bank account.

What does a merchant account do?

A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions. Merchant accounts require a business to partner with a merchant acquiring bank who facilitates all communications in an electronic payment transaction.

How do I start a merchant account?

While its important to check the requirements for your specific merchant account and application, you can generally expect to provide the following:Business bank account. Financial statements. Business license. Physical address. Completed Application. Employer Identification Number (EIN) Articles of incorporation.More items •May 3, 2021

How long does it take to set up a merchant account?

Opening a merchant account can take up to two weeks, but its usually less.