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What is a merchant agreement?

mer - chant a -gree - ment
noun

A merchant agreement is a formal contract established between a merchant and a payment processor or acquiring bank. Within this contract, the terms and conditions of their partnership are outlined, covering important aspects such as fees, responsibilities, and compliance with payment industry standards. This agreement forms the basis for a transparent and mutually advantageous collaboration.
 

How does a merchant agreement work?

The merchant agreement essentially acts as a roadmap, guiding both the merchant and the financial institution in their endeavors. It establishes a clear framework for cooperation, guaranteeing transparency and creating a solid foundation for a mutually beneficial collaboration that facilitates seamless payment processing.