Glossary
Merchant account
An account with an acquiring bank that lets a business accept card payments. A business bank account alone can't take cards; the merchant account is where the bank agrees to carry the card risk.
Also called: card processing account, acquiring account, merchant services account.
The acquiring bank, or a processor working for it, underwrites the business before the first payment: who owns it, what it sells, its website, its expected volume and its chargeback history. Settled card sales land on the merchant account and are paid out to the business's bank account after fees and any reserve.
There are 2 ways in. A payment facilitator such as Stripe or PayPal boards you in minutes under its own master account and reviews you afterward. A dedicated merchant account is underwritten up front and gives you your own MID, usually with better rates for real volume and more paperwork to get it.
For affiliates, the advertiser's merchant account is the hidden part of every card offer: when it's closed or capped, approvals drop and payouts can stall, whatever your traffic did.
Related terms: MID, Acquirer, Payment facilitator, Rolling reserve, Chargeback.