A Merchant is a business that sells goods or services. This term applies to all kinds of businesses, from large retail chains to small online stores, and includes service providers such as hotels and restaurants.

Merchants are a key component of the payment processing ecosystem as they initiate transactions by charging customers for goods or services. Merchants need a merchant account to be able to accept credit or debit card payments.

They are responsible for ensuring the security of customer data and for complying with all relevant laws and regulations. Merchants may also be liable for chargebacks and may be subject to fines or penalties for non-compliance with card network rules or legal requirements.

Therefore, it is crucial for merchants to work with a reliable payment processor and to have a good understanding of their responsibilities and liabilities in the payment processing process.