In banking, there are many nuances. In fact, determining the difference between reseller vs merchant account is a great example of two similar terms that can be hard to differentiate.
Fortunately, in this article, we’ll discuss both reseller accounts and merchant accounts, along with the differences between them.
Importantly, this will apply to both a single currency account with domestic banks as well as a multi-currency bank account with international banks.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Reseller vs Merchant Account
- Merchant Acquiring Bank
- Services Reseller Program
- Frequently Asked Questions
- Ready to Explore Your Options?
Reseller vs Merchant Account
A reseller account typically refers to an account that has been opened with a payment processor or independent sales organization (ISO) to offer payment processing services to third parties. A merchant account refers to an account that is opened with a payment processor or independent sales organization (ISO) to process transactions directly.
In other words, a reseller account is focused on helping other companies access payment processing services. Whereas, a merchant account is intended for a company’s own payment processing requirements.
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Merchant Acquiring Bank
When it comes to payment processing, one of the most important pieces in the equation is known as the merchant acquirer. Or, a merchant acquiring bank.
A merchant acquirer is a financial institution that provides the framework. But also, the licensing and capabilities for companies to process credit card transactions.
That said, the role of a merchant acquirer is often confused with that of an independent sales organization (ISO), which effectively is a reseller of merchant acquiring services.
Services Reseller Program
Importantly, a services reseller program (in the context of credit card processing) refers to organizations that have direct relationships with merchant acquirers.
In short, these organizations package and resell credit card processing services to their own customers or audiences. This often involves added value services and easier to navigate interfaces. For example, direct API access, payment gateway integration, unique reporting tools, and more.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to choose between reseller and merchant accounts. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is a Business Account the Same as a Merchant Account?
A business account is not the same as a merchant account. Instead, a business account typically refers to a checking or savings account. And a merchant account refers to a transactional account that is capable of receiving payments via credit card and other payment methods.
What Does It Mean to Be a Merchant of Record?
A merchant of record means to be authorized by a bank or other financial institution to process credit card transactions. But most importantly, the merchant of record will be listed on all credit card statements as the company processing the payment.
What Is a Credit Card Reseller?
Credit card reseller sounds like a company that sells credit cards on behalf of an issuing company. However, it typically refers to a company that resells the services of a payment processing company. In certain cases, there may be resellers of card services. However, these typically involve debit, gift, and anonymous card services instead of credit cards.
Ready to Explore Your Options?
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You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
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Of course, if you have any questions, please contact us directly.