Okuzeka
Finance & Banking vocabulary · Payments & Cards

Merchant

Meaning in finance & banking, with examples

/ˈmɜːrtʃənt/nounCommon term

In finance & banking, merchant means: A business that accepts card or digital payments from customers for goods or services, such as a shop, restaurant or online store.

In Turkish: üye işyeri, satıcı, işyeri

How it is used

The standard term in card payments. Banks sign up merchants, set the merchant fee (merchant discount rate) and provide POS terminals. The bank serving the merchant is the acquirer; the cardholder's bank is the issuer.

Example sentences

  1. The merchant fee for this restaurant is 1.8 percent per transaction.

  2. We signed up 2,000 new merchants after launching our virtual POS.

Common collocations

  • merchant fee
  • merchant account
  • merchant acquiring
  • online merchant
  • POS terminalA device at a point of sale, such as a shop counter, that reads payment cards or phones and sends the payment for approval.
  • chargebackThe reversal of a card payment after the cardholder disputes it, for example because of fraud or goods that never arrived. The money is taken back from the merchant.
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • contactless paymentPaying by holding a card, phone or watch near a card reader, without inserting the card or, for small amounts, entering a PIN.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.