A merchant account is a virtual account, held with a merchant service provider or bank, used to process credit cards, such as Visa, Mastercard, Discover, and American Express.   There is no direct access to a merchant account's funds.  Funds processed through a merchant account are generally deposited to a bank account belonging to the merchant, usually a checking account.   Generally, the bank account must be one that accepts ACH debits and credits.  This ensures that the merchant service provider can deposit merchant processing funds as well as debit any fees involved to service the account.

The process of applying for a merchant account varies on many aspects.  Some processors require signatures and paperwork faxed.  Some processors provide online applications and digital signatures which provides for quicker approval and activation.  PayByWeb always uses online applications and digital signatures for its merchant account needs, whenever possible.  This speeds up our process and helps make merchant account activation take as littl as one business day.