Merchant

A merchant is an individual or business entity that sells goods or services to customers in exchange for payment. Merchants operate across various sectors, including retail, hospitality, and e-commerce, and can range from small, local shops to large, multinational corporations. In the context of payment processing, a merchant is typically involved in transactions where they accept payment via various methods, such as credit or debit cards, electronic transfers, or digital wallets. Merchants are integral to the supply chain, as they connect consumers with the products or services they seek.
In the financial and payment processing industry, merchants often establish a relationship with a merchant account provider to facilitate transactions. A merchant account is a specialized type of bank account that enables businesses to accept and process payments electronically. This account acts as a bridge between the merchant’s bank and the customer’s bank, allowing funds to be transferred securely and efficiently. The term “merchant” can also refer to a broader range of professionals involved in buying and selling activities, including wholesalers and distributors, who play a crucial role in the economic ecosystem.