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.
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:
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.
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).
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:
Having these ready can speed things up. Some providers might ask for more, others less, depending on your business type.
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:
|
Fee Type |
What It Covers |
Typical Cost Range |
|
Setup Fee |
One-time charge to open the account |
USD 0 – 200 |
|
Monthly Fee |
Ongoing fee for account maintenance, statements, and support |
USD 15 – 250/month |
|
Transaction Fee |
Charged per payment processed (usually % + fixed fee) |
1.5% – 3.5% + USD 0.10 – 0.30 |
|
PCI Compliance Fee |
Covers costs of maintaining data security standards (not always charged) |
USD 15 – 25/month |
|
Early Termination Fee |
Charged if you close the account before the contract ends |
Up to USD 500 |
When a customer swipes, taps, or clicks “pay,” there’s a whole chain of players involved in moving the money securely.
|
Entity |
Main Role |
Typical Functionality |
Who Uses It |
|
Acquiring Bank |
Processes payments and holds the merchant account |
Transfers funds from card networks to your business account |
Merchant account holders |
|
Payment Processor |
Handles transaction flow |
Communicates between merchant, acquiring bank, and card networks |
Businesses of all sizes |
|
Payment Gateway |
Secures and transmits payment data (mainly online) |
Encrypts cardholder data and authorises transactions during online checkouts |
E-commerce and subscription services |
|
Merchant Service Provider |
Bundles services (acquirer, processor, gateway) into one platform |
Offers payment acceptance tools, compliance support, fraud protection, and reporting |
Small businesses to enterprise merchants |
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.
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.
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.
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.
The provider you choose doesn’t just handle your payments—they directly affect your operations. They can impact:
A strong provider should offer:
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.
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.
You’ll need a registered business, valid licence, bank account, and financial details to show you're ready to process payments.
Anywhere from 1 to 7 business days depending on how fast you submit your documents and how complex your setup is.
Yes, many providers now offer unified merchant accounts that support both e-commerce and physical POS systems.
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.
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.