Merchant Account Cardholder Explained

April 18, 2024

Here is the abstract illustration of a cardholder using a credit card.

What is a Cardholder?

This term refers to a person who owns and uses a credit card or debit card. The cardholder is authorized to use the card for transactions as per the agreement with the card-issuing bank. This could include buying products online, paying for services, withdrawing cash, etc.

Merchant vs. Cardholder

When a cardholder makes a purchase from a merchant, the transaction details are sent from the merchant’s point-of-sale system to the merchant account. From there, the transaction is processed further to ensure that the payment is correctly transferred. In a typical card transaction:

The cardholder provides their card information to pay for goods or services.
The merchant uses their merchant account to process and receive the payment.

About The Author

Phillip Parker

Phillip Parker is the founder, creator and author of this website. He is a payments industry expert, business consultant, and web developer. Since 2009, he has researched over 1,000 merchant services providers and published hundreds of payment education-related articles. His work has received national recognition and his expertise is regularly sought by large media outlets such as CNN, MSN, and INC Magazine among dozens of others. Learn more...

How Phillip Can Help You

Schedule a call with Phillip to get answers to your payment processing questions. Please note that Phillip's expertise focuses on merchant services within the U.S.

Credit card processing costs are complex and often difficult to understand. Hire Phillip to help you optimize your processing costs to the lowest possible rates without switching processors, trading out payment acceptance equipment, or modifying your processes.

Starting a new business or ready to find a new processor? Selecting the right merchant services provider is a crucial component of running successful business. Check out Phillip's processor picks see which companies offer the best services at the lowest costs or schedule a call today to learn how to get custom recommendations for you payment needs.

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Hello and thank you for visiting! I'm Phillip, the creator and author behind this website. My mission with CPO is to hold credit card processors accountable for their business practices. I do this by publishing my research on their policies, contracts, pricing, and client satisfaction. The goal of this research is to provide a comprehensive guide for achieving the lowest costs with the best providers. I have been publishing my findings since 2009, and my work has been recognized by national publications such as CNN, MSN, FOX, and INC Magazine, among many others.