An internet merchant account is essentially a bank account for an online business. It allows merchants to deposit and refund online payments. It is typically obtained through an acquiring bank. Merchants pay a processing fee for each transaction processed.
Applying for an Internet Merchant account is similar to applying to a commercial loan. The fees charged by the acquiring bank vary, and depend on your credit history and other business factors. To qualify for an Internet merchant account, you must have a checking account with a U.S. bank. If you do not have an account with a U.S. bank, your merchant bank must set up your account to use one of the following processing networks:
EDS
First Data Merchant Services
Norwest
Nova
Paymentech
TeleCheck
Vital
Your account must be set up with the bank to use PayPal as the software type of the payment gateway.
PayPal has simplified this process by providing you with the option to apply for an internet merchant account with our preferred merchant account provider, Merchant e-Solutions, when you register for a Payflow account.
You have many opportunities to set up an internet merchant account. You can get an account before selecting a Payflow account, while signing up or registering for a Payflow account, or before activating your Payflow account. However, you need an internet merchant account set up before you start processing online payments.