A Merchant Bank — also known as an acquiring bank — is a financial institution that provides a range of services to businesses, including underwriting, loan services, and payment processing. It provides the merchant with the ability to accept credit and debit card payments.
Merchant banks play a crucial role in the financial system by helping businesses access the funds they need to operate and grow. In addition to payment processing, merchant banks may offer a variety of other financial services to businesses, such as corporate banking, trade finance, and asset management.
It is important for merchants to have a strong relationship with their merchant bank, as it can impact their ability to accept payments, manage their finances, and access additional financial services when needed.