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Merchant Account Meaning

A specialized type of bank account that allows a business to accept electronic payments, specifically credit and debit cards. It is a middleman account where the funds from a sale are held and verified before being settled into the merchant's actual business checking account.

Having a merchant account is what allows a business to process payments through networks like Visa or Mastercard. The provider of the account, the acquirer, takes on the risk of fraud and chargebacks.

If a customer disputes a charge, the merchant account provider is the one who handles the dispute and pulls the money back from the merchant.

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