Merchant Definition.

Any business or entity that accepts a payment method as payment for goods or services, bound to its acquirer by a merchant agreement. Not to be confused with the acquirer: the merchant makes the sale and collects payment, while the acquirer processes the transaction and provides the financial guarantee. Each acceptance point is identified by a MID.

See also

→ Acquirer→ MID→ POS terminal

Where this term appears

GuideThe four-party modelGuideThe role of banksGuideMerchant, acquirer, PSPGuidePayment schemesGuidePayment regulationGuidePayments in GermanyGuideWhen no authorization is required: exclusions from the scope of payment servicesGuidePayments in FranceGuidePayments in PolandGuidePayments in Romania and BulgariaGuidePayments in ArgentinaGuidePayments in Japan and Korea

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