To accept card payments, you have to open a merchant account. During payment processing, this account holds funds received from your customer’s card transactions before they are transferred to your business account.
But don’t confuse a merchant account with a business account. A business account is like a regular bank account – you can withdraw money to pay for the expenses related to your business. With a merchant account you can’t make withdrawals, it’s just an intermediary account.
A merchant account comes with fees and offers extra services like online account reporting, PCI compliance and cheque processing.