What is a merchant account? Where card payments land first
By SendPay Business · · 2 min read
A merchant account is a special account, run by an acquiring bank or payment provider, that receives the money from a business's card payments. After fees and any holds, the money is then paid out to the business's normal bank account.
Merchant account vs business bank account
A business bank account holds your money and makes payments. A merchant account sits in front of it and collects card payments. You can't usually spend from a merchant account directly; it settles into your bank account on a schedule.
Dedicated vs aggregated
- Dedicated: an account in your business's own name with an acquirer, often suited to larger volumes.
- Aggregated: you share a provider's merchant account, which is quicker to open and common for small businesses.
What providers check
Before approving an account, providers look at the business and its owners, what it sells, expected volumes and refund or chargeback risk. Higher-risk businesses may face reserves or rolling holds on payouts.
Where SendPay fits
SendPay platforms include payment links, invoicing and business accounts under your own brand, powered by licensed partners. You can preview your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.