A merchant account enables a business to accept payments made via credit and debit cards. An account is established with an agreement between an acquiring bank and the merchant.

An acquiring bank is a financial institution that processes debit and credit cards on behalf of a merchant. Acquiring banks provide the merchant facilities and settlement of the merchants funds earned through payment processing.

A merchant account provider gives companies the ability to accept and process debit and credit cards in return for goods and services. The merchant can be delivering such goods and services either through face to face, telephone or internet based offerings.

Merchant services are better explained by being the technology and, accounts and equipment that a business needs in order to accept payment through debit and credit cards.

Merchant services work by allowing the consumer with the debit or credit card to process a payment for goods or services supplied by the merchant. The merchant then receives the funds from the transaction with it been deposited into the merchant account held at the acquiring bank. Then on an agreed cycle the merchant will receive the funds received.