Man going over details of merchant account agreement.

Understanding Merchant Accounts for Small Business

A merchant account is an essential tool for any business that wants to accept credit and debit card payments. Whether you run an online store, a retail shop, or a service-based business, having a merchant account can streamline your payment process and improve customer convenience. This guide will explain what a merchant account is, how it works, why small businesses need one, and the differences between online and in-store merchant accounts.

What Is a Merchant Account?

A merchant account is a type of business bank account that allows companies to accept credit card, debit card, and digital payments. When a customer makes a payment, the funds go into the merchant account before being transferred to the business’s regular bank account.