How to set up a merchant account for businesses

Before your business can start accepting credit or debit card payments, you’ll need a merchant account. It’s one of the first steps to making sure your customers can pay you easily and securely.

In this guide, we’ll walk you through the process—from choosing the right provider to getting your account approved—so you can start accepting payments without delays.

What is a merchant account?

A merchant account is a type of business account that lets you accept card payments from your customers. It doesn’t work like a regular bank account. Instead, it holds the money from your customer’s card payment temporarily, before sending it to your business bank account.

Some people mix up merchant accounts with payment gateways. Here’s the difference:

• A payment gateway is the tool that securely sends the card details during checkout.
• A merchant account is where the money goes after the payment is approved, before it's deposited into your bank account.

If you run an online store, a physical shop, or a service-based business with recurring payments, you’ll need both to process card transactions smoothly.

How to open a merchant account

So, you're ready to start accepting credit card payments. Great. But first, you’ll need a merchant account. Here's how businesses do it (and what to expect).

1. Start by registering your business: You can’t get very far without doing this. You’ll need to register your business with your state or city, whatever applies where you live. Get a business licence and an employer identification number or EIN, which is basically a tax ID number for your business. 
2. Set up your business bank account: This is where all the money from your sales will eventually go. You’ll need to open a proper business account, not your personal one. Some providers might want to see your recent statements too, so it’s smart to prepare them in advance.
3. Research merchant account providers: There are many merchant account providers out there, and they are not all the same. Some charge higher fees, others are picky about the industries they work with. Look at what payment methods they support, how quickly they settle funds, and whether they’re known for good customer support.
4. Apply for a merchant account: Most applications are online and pretty straightforward. You’ll upload your business documents, enter some details about your sales volume or expected transactions, and perhaps share your website or checkout setup. They’ll run a risk check to make sure your business isn’t high-risk or shady.
5. Finally, connect it to how you take payments: Once you're approved, you need to hook the account into your point-of-sale system or online store. If you’re using something like Shopify or WooCommerce, this is usually pretty painless. The provider will give you tools or plugins to help with integration. Antom provides easy integration with platforms like Shopify and WooCommerce, or you can also connect directly with Antom to take payments from your customers. Connect with us to learn which way works better for your business.

What documents do you need to get a merchant account?

When you apply for a merchant account, the provider needs to check that your business is real and that it’s set up to handle payments. To do that, they’ll usually ask for a few documents.

Here’s what you’ll likely need:

1. Your business name, type, and contact details
   
   
2. Proof that your business is registered — like your business licence or certificate of incorporation
   
   
3. A government-issued ID from the business owner or main decision-maker
   
   
4. A bank account statement or financial report
   
   
5. An estimate of how many transactions you expect each month and how much the average sale will be

Having these ready can speed things up. Some providers might ask for more, others less, depending on your business type.

How much does it cost to set up a merchant account?

The cost of a merchant account depends on who you sign up with and how your business operates. Some accounts are cheap to open, but charge more per transaction. Others have no startup fees, but higher monthly charges. Here's a breakdown of common costs:

Who’s involved in the payment processing chain?

When a customer swipes, taps, or clicks “pay,” there’s a whole chain of players involved in moving the money securely.

A merchant service provider (MSP) is your go-to platform for accepting payments, ensuring security, and managing account activity. They help you stay PCI compliant, offer tools to track your transactions, and support different ways your customers want to pay.

Compliance and risk management

PCI compliance

If you store, handle, or transmit cardholder data, PCI DSS compliance means following security protocols like data encryption, regular scans, and secure payment handling to protect your business and your customers.

What happens during underwriting

Once you apply for a merchant account, the provider reviews your business profile. They look at what you sell, your typical transaction amounts, refund policies, and financial history. This helps them understand your risk level and configure your account accordingly.

Fraud prevention and chargeback tools

Expect your provider to offer fraud protection tools like address verification, risk scoring, and transaction velocity checks. These help reduce chargebacks and protect your bottom line. Secure API integrations and proper setup also go a long way in preventing data leaks or payment errors.

Why the right provider matters

The provider you choose doesn’t just handle your payments—they directly affect your operations. They can impact:

• Cash flow: How quickly you get paid
  
  
• Customer experience: Smooth checkouts = happy customers
  
  
• Costs: Transparent vs. unexpected fees

A strong provider should offer:

• Minimal downtime and fast processing
  
  
• Support for a wide range of payment types
  
  
• Built-in tools for compliance and fraud prevention
  
  
• Responsive support if something goes wrong

The wrong provider can risk slow payouts, higher fees, restricted payment types, or getting stuck in a contract with zero flexibility.

The bottom line: Look for a provider that fits the way you do business—whether you’re scaling fast, selling internationally, or offering subscriptions.

Frequently Asked Questions

How do I create a merchant centre account?

A merchant centre account usually refers to a Google Merchant Centre account, which is unrelated to payment processing. For accepting payments, you need to apply for a merchant account from a provider.

What is required to get a merchant account?

You’ll need a registered business, valid licence, bank account, and financial details to show you're ready to process payments.

How long does approval take?

Anywhere from 1 to 7 business days depending on how fast you submit your documents and how complex your setup is.

Can I use one account for online and in-store payments?

Yes, many providers now offer unified merchant accounts that support both e-commerce and physical POS systems.

What are the costs involved?

You might pay a small setup fee, but most of your ongoing costs will come from per-transaction fees and monthly service fees. See How much does it cost to set up a merchant account above for a quick overview.

Start accepting payments with Antom

Ready to take payments? Antom makes it easy. We help you get set up fast, with access to test environments and smooth integration through our APIs. Whether you’re a small business or scaling globally, Antom supports your growth with transparent pricing and local settlement options.