Merchant Agreement

A Merchant Agreement is a contract between a merchant and an acquiring bank or payment processor. It outlines the roles and responsibilities of each party, the terms and conditions of the account, the fees and rates associated with processing, and the procedures for dispute resolution.

The agreement typically includes details including:

  • the services provided by the acquiring bank or payment processor
  • the technical requirements for processing transactions
  • the responsibilities of the merchant in terms of data security and fraud prevention
  • the charges associated with different types of transactions
  • the percentage rate for card-present transactions versus card-not-present transactions
  • any additional fees for services like chargeback management or fraud monitoring

The dispute resolution section will detail the process for resolving any disagreements or issues that may arise between the merchant and the acquiring bank or payment processor. This may include procedures for arbitration or mediation.

It is important for merchants to read and understand the merchant agreement carefully before signing, as it is a legally binding document that governs their relationship with the acquiring bank or payment processor.