What Is the Difference Between a Merchant Account and a Business Account?
A merchant account and a business bank account both help a company manage money, but they serve very different purposes. A merchant account connects to payment processing and lets a business accept credit and debit card payments. A business bank account is where the company keeps and manages its funds for everyday financial activities. Understanding this distinction is particularly important for businesses that accept online payments or operate in industries that may require specialized payment processing. What Is a Merchant Account? A merchant account is a specialized account used to process card payments. When a customer pays a business by credit or debit card, the transaction must pass through payment-processing systems before the money is deposited into the company's bank account. For example, imagine a marketing company charges a client $3,000 for a monthly campaign. If the client pays by card, the payment goes through the company's payment-processing setup. After the tran...