In today's marketplace it is essential for a business to accept credit cards. Credit cards are the most commonly used payment method in most of the developed world, and certainly in the United States. Not only do payment cards make it easier for consumers to pay for things, they also have many benefits for businesses whom accept them. Some of these benefits include: fraud detection and prevention, no more returned checks, money is quickly deposited directly into the businesses' bank account, higher security over dealing with paper currency, and ease of accounting. Obtaining card processing for a business, however, can be a daunting task due, in part, to the learning curve and jargon associated with credit card processing. This article is intended as an introduction to the three main facets of credit card processing: the merchant account, payment gateway, and payment processor.

A merchant account is a special type of bank account provided by a bank that allows a business to accept payments via credit cards, debit cards, and electronic checks. The account can be thought of as a virtual bank account that accepts electronic money. Typically a business will obtain a merchant payment processing iso account through an agreement with a merchant services company. A merchant services company is a company which usually resells these accounts from larger banks, sets up contracts with payment processors, resells or offers payment gateway services, equipment, and is basically a one-stop-shop for credit card processing.