Merchant account

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A merchant account is a type of bank account that allows a seller, know as the merchant, to accept payments by debit or credit cards. 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, payment service provider, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement and can act as middle man between the merchant and the bank.

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.

A high-risk merchant account is a business account or merchant account that allows the business to accept online payments though they are considered to be of high-risk nature by the banks and credit card processors. They will typically pay higher transactions fees if they are accepted at all. The industries that possess this account are adult industry, travel, Forex trading business, gambling, and multilevel marketing businesses. "High-Risk" is the term that is used by the acquiring banks to signify industries or merchants that are involved with the higher financial risk.