Merchant account, what is it and who will need it

We live in the era of online commerce and cashless payments, sometimes it is even difficult to remember when the last time something was paid with paper notes. All entrepreneurs who sell something and accept payment by card through the terminal or online are the owners of merchant accounts. Let’s see what it is and how it works.

A merchant account is a special account to which sellers receive money when a buyer pays with a card or other alternative payment method. It is also called a trading account.

Such accounts can be divided into 2 types:

How it works?

After the client has decided on the purchase and proceeded to pay on the site, he is sent to a page where you need to enter card details – this is a payment gateway. Its task is to encrypt the buyer’s card data and transfer them to the processing center (a company that technically provides communication between the buyer, the bank and the seller).


Further, the processing center sends a request to the acquiring bank (in which the seller’s account is opened), which contacts the issuing bank (which issued the card) through the payment system (Visa, Mastercard, etc.).

The task of the issuing bank is to check the activity of the account and the availability of the required amount on the balance of the buyer.

After that, back along the chain, the processing center receives information along with a unique payment code and notifies the seller and buyer about the payment. In fact, this complex circuit takes only a few seconds.

First, the money will be credited to the merchant account of the seller, and after a few days – to the bank account, from where they can be withdrawn. Such a period of time is necessary in case the client requests a refund.

Advantages of having a merchant account:

Who is suitable for a merchant-account?

All companies that trade in online stores, marketplaces, online casinos, gaming sites, as well as physical stores that plan to use the POS-terminal.

How to open it?

The process of opening a merchant account differs not only in different banks/payment systems, but also in different jurisdictions. It is important to choose the right acquirer, taking into account your type of activity and business needs. We will be happy to help you in this matter, as well as prepare all the necessary documents and accompany you in the process of opening a trading account. To get advice, please contact White&Partners specialists by clicking on this link.


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