Stripe vs Merchant Account: Is Stripe a Merchant Account really?
When companies start accepting payments online, they tend to come across two terms: Stripe vs merchant account . Most think Stripe is just a merchant account, but the truth is not that simple. It is important to know the difference between these payment processing systems to make knowledgeable decisions regarding your company's financial architecture. What Is a Merchant Account? A merchant account is a separate banking account that companies employ to receive debit and credit card payments. When a buyer pays with a card, funds are held in the merchant account for a while before being transferred into your business bank account. Conventional merchant accounts are established by acquiring banks or independent sales organizations (ISOs), consisting of distinct contracts with payment processors, gateway providers, and, in some cases, other service providers. This setup gives businesses straight access to processors and banks, giving them greater control over their payment processes. ...