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A Merchant Account is a special type of account, at a bank or other financial institution, that allows businesses to accept payments by debit or credit card. The account is based on a contract between the Acquiring Bank and the Merchant.

For e-commerce or online purposes, there are two types of merchant account:

  • DIRECT MERCHANT ACCOUNT: This is where the merchant and the acquiring bank have a direct contract. This type of merchant account is generally suitable for online businesses with volumes above $100,000 USD per year. With this type of account, the merchant is responsible for all the security and technical aspects such as installation of the gateway, IT security etc.
  • IPSP / TPP (THIRD PARTY PROCESSOR): In this model, a third party company has the direct merchant account, and it is this company that is responsible to the acquirer for the business of the ‘sub merchant.’ Generally the IPSP or TPP provides an overall, integrated service to the merchants – both the financial processing side and the gateway technical side. This option is better for smaller and start-up merchants as it is easier to get approved and get started. Typically these accounts are aimed at merchants with processing volumes under $100,000 USD per year.

WorldMerchant are specialists in finding the best solution for each business. You are 60 seconds away from being able to obtain your Merchant Account: simply complete our Merchant Account pre-approval form and we’ll take care of the rest!