A Merchant Account allows businesses to accept card and digital payments. The merchant account is used to hold funds from customers' transactions until they can be deposited into the business bank account. Banks and payment processors offer merchant accounts, which have different fees and terms. Merchant accounts may be required by businesses in industries with high risk. These merchants will have additional security features. This account allows for seamless payments, ensures that payment regulations are met, reduces the risk of fraud, and helps businesses comply with regulatory requirements. Businesses would not be able to accept credit card payments without a merchant account. This limits their ability to serve a wider customer base.