A Merchant Account is a special type of bank account that allows businesses to accept and process payments, especially through credit cards, debit cards, and digital payment methods.
A Merchant Account acts as an intermediary account where customer payments are first received before being transferred to the business’s main bank account.
When a customer pays via card or digital mode, the payment goes through a payment processor and acquiring bank, and is then settled into the merchant account.
In India, digital payment systems are regulated by the Reserve Bank of India.
"An online store receives payments via credit card, which are processed and settled through its merchant account."