---
title: "What is Merchant account? | Chargezen"
description: "A business bank account that lets you accept card payments. Card sales settle into it before the money reaches your regular bank account."
url: "https://chargezen.com/glossary/merchant-account"
lang: "en"
---

Canonical URL: https://chargezen.com/glossary/merchant-account

# Merchant account

Merchant account

Checkout

A business bank account that lets you accept card payments. Card sales settle into it before the money reaches your regular bank account.

## What is Merchant account?

When a customer pays by card, the money doesn't go straight to your bank account. It moves through a chain: the payment gateway passes the card details, the processor and card network route the charge to the customer's bank, and the approved funds settle into a merchant account held with an acquiring bank. From there they are paid out to your business bank account, usually a day or a few days later. **Two ways to get one:** - **Your own merchant account,** opened directly with an acquiring bank or processor. It takes an application and underwriting, and usually comes with custom rates. - **A shared (aggregated) account,** where a provider such as Shopify Payments, Stripe or PayPal holds the account and you are one of many sellers under it. Setup takes minutes, and fees are usually a flat percentage plus a fixed amount per charge. **Things that matter for recurring charges:** - Support for saved cards, so renewals can be charged without the customer present. - Clear handling of declines and retries, so you can recover failed payments. - Reserves and payout holds, which providers can apply to higher-risk businesses. - Chargeback rules, because a high dispute rate can put an account at risk. **How Chargezen handles it:** Chargezen Subscriptions charges renewals through Shopify subscription contracts, so payments run through the payment setup your Shopify store already uses.

## Example

A supplement brand on Shopify Payments takes a $50 renewal. The charge is approved, settles into the merchant account Shopify Payments holds, and arrives in the brand's bank account at its next payout, minus processing fees.

## Why Merchant account Matters

Your merchant account decides your fees, how fast you get paid and how safely you can charge saved cards, which every renewal depends on.

## Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

[View Full Glossary](https://chargezen.com/glossary)