The key players
Each role handles a different part of moving money from a customer's card to your bank.
- Merchant account: a business account with an acquiring bank that lets you accept card payments.
- Payment processor: the company that routes transaction data between you, the card networks, and banks.
- Payment gateway: the software that securely sends online or card-not-present transactions for processing.
- Payment facilitator (PayFac): a provider that groups many businesses under one master merchant account.
Dedicated merchant account
You get your own merchant ID and are reviewed up front. This usually means more stable processing, room to negotiate pricing as you grow, and fewer surprise holds. Setup takes a little longer.
Aggregated or PayFac account
Sign-up is fast and pricing is usually flat-rate. It is a practical way to start, but accounts are monitored after activation, and unusual activity can trigger holds. Costs can also climb as volume grows.
Which setup fits your business
Newer businesses with low volume often start with an aggregator. As monthly volume, ticket size, or complexity grows, a dedicated merchant account with interchange-plus pricing often becomes the better long-term fit.
This guide is general education, not financial or legal advice. Pricing, approval, and terms depend on provider review.