E-commerce is expanding rapidly, with global online sales projected to reach $6.42 trillion by 2025. Asia alone will generate more than $2 trillion in online revenue, representing more than half of all global e-commerce transactions. For online businesses competing in this market, managing payments efficiently is a fundamental part of success. To accept online payments securely, every e-commerce business needs a merchant account.
What is an e-commerce merchant account?
An e-commerce merchant account is a special type of bank account that allows businesses to accept credit card payments, debit card payments, and digital wallet transactions through their e-commerce website or e-commerce platform. It temporarily holds customer funds while the payment processor and payment gateway complete the transaction and clear it for settlement.
In short, it bridges the gap between your online store and your business bank account. Without it, you wouldn’t be able to process most forms of online payment, including cards and alternative payment methods such as mobile payments or bank transfers.
How an e-commerce merchant account works
When a customer makes a purchase on your e-commerce website, several steps occur in the background:
- The customer enters their payment details at checkout.
- The payment gateway encrypts this data and sends it to the payment processor.
- The processor communicates with the customer’s issuing bank to authorise the transaction.
- Once approved, the funds are placed into your merchant account.
- After settlement, the funds move into your business bank account.
Throughout this process, fraud monitoring and advanced fraud detection tools help identify suspicious transactions, reducing chargebacks and unauthorised activity.
Types of e-commerce merchant accounts
Traditional or dedicated merchant accounts are opened directly with a bank or acquirer. They suit high-volume or high-risk businesses such as travel agencies or CBD retailers. These accounts come with customised rates and settlement schedules, offering more control but requiring longer approval times.
Aggregated or PSP merchant accounts (through providers such as online payment service providers) group multiple e-commerce merchants under one shared account. They are easier to set up and ideal for startups or SMEs needing quick access to payment processing. Settlement times may vary, and pricing is usually standardised.
Merchant accounts can also differ by risk profile or sales model:
- High-risk accounts are used by sectors with higher chargeback rates or regulatory scrutiny.
- Low-risk accounts are common for established, lower-volume online stores.
- Hybrid setups combine in-store and online transactions, using unified payment systems.
E-commerce merchant accounts vs standard merchant accounts
A standard merchant account supports card payments in physical retail environments. Transactions are processed when the card is present and verified through a terminal.
An e-commerce merchant account, on the other hand, supports card-not-present transactions. These carry more risk, as the buyer and card are not physically present. As a result, e-commerce accounts require additional layers of security, such as PCI DSS compliance, tokenisation, and real-time fraud screening.
|
E-commerce merchant account |
Standard merchant account |
|
|
Transaction type |
Online, card-not-present |
In-person, card-present |
|
Security requirements |
High – includes PCI DSS, encryption, and fraud monitoring |
Lower – chip & PIN verification |
|
Fraud risk |
Higher, requires advanced fraud detection |
Lower due to physical verification |
|
Integration |
Linked to e-commerce platform and payment gateway |
Integrated with POS terminals |
|
Settlement time |
Typically 1–3 days |
Usually same or next business day |
|
Supported payment methods |
Cards, wallets, and online payment types |
Primarily card and cash transactions |
|
Customer experience |
Online checkout and digital authorisation |
In-store payment interaction |
|
Setup process |
Requires verification and online integration |
Simple POS setup with acquiring bank |
Benefits of an e-commerce merchant account
Having a dedicated e-commerce merchant account provides several operational and financial benefits:
- Secure, encrypted processing: Compliance with PCI standards protects against data breaches.
- Accept diverse payments: Accept credit card payments, e-wallets, and local payment types from customers worldwide.
- Fraud protection: Integrated tools for fraud monitoring and advanced fraud detection reduce chargebacks.
- Scalability: Support for multiple currencies and international payment solutions.
- Faster settlements: Improve cash flow by receiving funds more quickly.
Which types of businesses need an e-commerce merchant account?
Any online business that accepts card payments or other electronic transactions needs an e-commerce merchant account. That includes:
- E-commerce retailers selling physical or digital goods.
- Subscription services that collect recurring payments.
- Marketplaces handling multiple sellers.
- Service providers such as software platforms, entertainment portals, or travel companies.
Even small online stores benefit from having a merchant account, as it allows them to handle credit card transactions securely and expand into new markets.
How to set up an e-commerce merchant account
Setting up a merchant account usually involves these steps:
- Choose a payment processor or merchant account provider. Compare rates, supported currencies, and fraud protection features.
- Submit your business documentation. This typically includes proof of identity, business registration, and bank details.
- Undergo a risk review. Providers assess your business type, average transaction size, and potential chargeback risk.
- Integrate your payment gateway. Connect your e-commerce platform to start accepting online payments.
- Test the setup. Many payment providers, such as Antom, offer sandbox environments to simulate credit card payment processing before going live.
How to choose an e-commerce merchant account provider
When evaluating an e-commerce merchant account provider, consider the following:
- Security features: Look for PCI compliance and built-in fraud monitoring systems.
- Supported payment methods: The provider should handle cards, wallets, and regional payment types to meet local buyer preferences.
- Settlement options: Multi-currency and flexible settlement options simplify reconciliation for global businesses.
- Fees and transparency: Review all transaction costs, monthly fees, and currency conversion rates.
- Reliability and uptime: Consistent service ensures customers can always complete payments.
- Integration flexibility: The system should easily connect to your existing e-commerce platform and accounting tools.
Antom offers PCI-compliant merchant services, multi-currency settlement, and embedded fraud control, helping merchants process online payments confidently and securely.
Conclusion
For any e-commerce business, having the right merchant account is as essential as having a reliable payment gateway or payment processor. It’s the financial foundation that makes secure and compliant payment processing possible. With global e-commerce continuing to expand, the right setup allows you to accept more payment methods, reach more customers, and protect every credit card transaction.
Antom supports businesses of all sizes with merchant accounts, advanced fraud detection, and flexible settlement solutions that make it easier to manage funds and maintain control across markets. By understanding how merchant accounts work and choosing the right partner, you can strengthen your payment system and grow with confidence in an increasingly digital economy.
