A merchant is a person or company that sells products for profit and facilitates the customer buying journey. They can operate as retailers or wholesalers and can sell goods to any source, as long as they are selling for profit. Merchants can also be e-commerce sellers, selling their products directly to consumers via online marketplaces.
Is Merchant a Seller Or Buyer?
Ecommerce merchants often have a larger grasp on their inventory, finances, and marketing than retail-only sellers & compare merchant services. They can scale their operations more easily, and handle all facets of business development, promotion, shipping, and customer service themselves. However, e-commerce merchants must be mindful of pitfalls like stolen credit cards and eCommerce fraud.
To accept credit card payments from customers, merchants need a merchant account. This is a special bank account that stores payment details and processes transactions for debit and credit cards.
A merchant account can be obtained through banks or third-party payment services like PayPal and Square. The process of getting a merchant account requires a legitimate business license, bank statements, and credit checks to ensure the merchant is not running a fraudulent operation.
A merchant account also helps with scalability, as it reduces the risk of fraud and other losses associated with large volumes of cashless sales. The best merchant account providers offer high-level security standards and support a variety of sales channels. To find the right merchant account provider for your business, consider your needs, the types of sales you conduct, and your projected growth.