--- title: What is a Merchant Account? description: Don't expect your customers to have cash on hand to make a payment. You'll lose business. You want to offer them the option to pay with a credit or debit card. To do so, you need a merchant account. --- [Skip to content](https://support.payway.com/knowledge/what-is-a-merchant-account#main-content) English Show submenu for translations ![7100C\_PAY\_PaywayPms\_Logo-bird\_full color](https://support.payway.com/hs-fs/hubfs/7100C_PAY_PaywayPms_Logo-bird_full%20color.png?width=100&height=100&name=7100C_PAY_PaywayPms_Logo-bird_full%20color.png) Open main navigation Close main navigation - English Show submenu for translations - Go to payway.com Go to payway.com Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [Help Center](https://support.payway.com/knowledge?hsLang=en) 2. [Merchant Account Services](https://support.payway.com/knowledge/merchant-account-services?hsLang=en) # What is a Merchant Account? ## Don't expect your customers to have cash on hand to make a payment. You'll lose business. You want to offer them the option to pay with a credit or debit card. To do so, you need a merchant account. A merchant account allows a business to accept debit and credit card payments in person and online. This is separate from a typical bank account. The merchant account acts as the middleman between the swiping of the card and the deposit of the money into a business account. In order to get a merchant account, you must apply and be approved.  During the review process, a merchant bank may consider: - How long the business has been established - History of bankruptcy - Past credit issues and any previous merchant accounts. Merchant banks might also analyze if your business is susceptible to credit card fraud. If a business is deemed high risk, the vendor might initially set higher transaction fees to offset that risk. A merchant account or payment processing provider will help businesses set up their own merchant account.  Some businesses, especially start-ups, prefer to work with a payment service provider or PSP (think Square, Stripe, Paypal) as they do not have to apply for their own merchant account. A PSP combines a variety of different merchants under a single umbrella account. So, instead of getting a specific merchant ID number through a processing bank with a merchant account, you get a license to process payments through the PSP merchant account. You become what’s known as a “sub-merchant.” [Read this article for the pros and cons.](https://www.payway.com/resource_items/merchant-accounts-vs-payment-service-providers-which-should-you-choose) - [Using Payway Payment Manager](https://support.payway.com/knowledge/using-payway-payment-manager?hsLang=en#main-content) - [User admin](https://support.payway.com/knowledge/using-payway-payment-manager?hsLang=en#user-admin) - [Integration Guides](https://support.payway.com/knowledge/integration-guides?hsLang=en#main-content) - [Apple Pay](https://support.payway.com/knowledge/integration-guides?hsLang=en#apple-pay) - [Google Pay](https://support.payway.com/knowledge/integration-guides?hsLang=en#google-pay) - [Payment Processing 101](https://support.payway.com/knowledge/payment-processing-101?hsLang=en#main-content) - [Payment Gateway](https://support.payway.com/knowledge/payment-processing-101?hsLang=en#payment-gateway) - [Pricing & Fees](https://support.payway.com/knowledge/payment-processing-101?hsLang=en#pricing-fees) - [Payment Types](https://support.payway.com/knowledge/payment-types?hsLang=en#main-content) - [Contactless Payments](https://support.payway.com/knowledge/payment-types?hsLang=en#contactless-payments) - [ACH Payments](https://support.payway.com/knowledge/payment-types?hsLang=en#ach-payments) - [Payment Security](https://support.payway.com/knowledge/payment-security?hsLang=en#main-content) - [P2PE (Point-to-Point Encryption)](https://support.payway.com/knowledge/payment-security?hsLang=en#p2pe-point-to-point-encryption) - [Tokenization](https://support.payway.com/knowledge/payment-security?hsLang=en#tokenization) - [3D Secure](https://support.payway.com/knowledge/payment-security?hsLang=en#3d-secure) - [Merchant Account Services](https://support.payway.com/knowledge/merchant-account-services?hsLang=en) - [Payment Gateway Features](https://support.payway.com/knowledge/payment-gateway-features?hsLang=en) - [Failed Payment Recovery](https://support.payway.com/knowledge/failed-payment-recovery?hsLang=en) [![Chill listening crop-3](https://support.payway.com/hs-fs/hubfs/logo%20for%20email-1.jpg?width=100&height=24&name=logo%20for%20email-1.jpg "Chill listening crop-3")](https://payway.com) Copyright © 2026, Payway