What is merchant processing?

Merchant processing refers to the handling of electronic payment transactions for businesses, usually involving credit and debit card payments. It involves the setup and management of merchant accounts, payment gateways, and the secure transfer of funds from a customer's bank to the merchant's account. Merchant processors act as intermediaries between the business, customer, and banks to ensure transactions are authorized, processed, and settled efficiently. This service is essential for businesses that want to accept electronic payments, both online and in-person.