Merchant
A merchant is an actor in e-commerce who sells goods and services over the Internet. You use payment providers to process transactions securely and efficiently.
Merchant
A merchant, also known as an online retailer, is a key figure in e-commerce, as they sell goods and services over the Internet. The role of a merchant encompasses the entire sales process, from product presentation to payment processing.
Merchants rely on ensuring reliable and secure payment processing to build customer trust and enhance the customer experience. Consequently, many merchants work together with payment service providers to enable seamless transaction processing.
In payment transactions, a distinction is made between the merchant (retailer), the acquirer (which processes the card payment for the merchant), and the issuer (which issued the card to the cardholder). Together, these three parties form the core framework of the card payment system.
Merchant examples
An online shop operator integrates a payment provider to accept credit cards, TWINT and purchase on account.
A food truck operator uses a mobile card terminal to accept cashless payments on site.
A SaaS company sets up recurring payments to automatically bill monthly subscriptions.
Merchant FAQ
What is a merchant in e-commerce?
A merchant is a person or a company that sells goods or services online or in-store and accepts electronic payments for them.
Do you, as a merchant, need a payment service provider?
Yes, to be able to accept electronic payments such as credit cards, TWINT or purchase on account, a merchant usually requires a payment service provider (PSP) or an acquiring contract.
What is the difference between merchant and acquirer?
The merchant sells goods or services. The acquirer is the financial institution that processes the card payment on behalf of the merchant and transfers the amount to the merchant's account.
What fees do you pay as a merchant for card payments?
Merchants pay a fee per transaction, which consists of the interchange fee (to the issuer), the acquirer margin and the PSP fee. In Switzerland, the total costs are typically between 1.25% and 2.50% of the transaction amount.
