If you want to accept credit and debit cards, a merchant account is the financial infrastructure that makes it possible - a temporary holding space where card funds sit before they settle into your business bank account.
What you need to open one
Providers generally want to see a legal business entity, a dedicated business bank account, a realistic estimate of your transaction volume, and an acceptable risk profile.
The main types
- Traditional accounts - custom rates for stable, low-risk businesses.
- Aggregated accounts - Square, Stripe and similar; fast to set up, slightly higher fees.
- High-risk accounts - for industries prone to chargebacks, with stricter underwriting and rolling reserves.
Do you actually need one?
If you sell anything online or in person and want to take cards, yes - in one form or another. The real question is which structure fits your volume and margins, which is exactly where a good advisor saves you money.