Updated September 20, 2024

What is a Merchant Account?

To fully understand an aggregated merchant account, it's important to understand the basics of how a dedicated merchant account works. A dedicated merchant account is necessary to accept credit card payments. That’s because a merchant account works with an acquiring bank as a middleman that facilitates the payment between credit card providers and the business. As a merchant, you'll work with a merchant account provider to obtain an account that holds the money from a debit or credit card and then transfers that money to your business bank account.

Even with your own merchant account, you'll still need to set up other systems to engage in credit card processing. For instance, you'll need a secure payment gateway and fraud protection. The good news is that traditional merchant account providers can usually help obtain those.

What is an aggregate or aggregated merchant account?

Now that you understand how dedicated merchant accounts are set up, you're probably wondering how an aggregate merchant account works. Both are accounts that allow a payment processor to process credit and debit cards. However, an aggregate merchant account combines multiple businesses under a shared account. This allows them to spread out risks associated with any single company. As a result, aggregate accounts try to balance the types of businesses they put together on the banking side.

Benefits of Aggregate Merchant Accounts

1. Immediate Approval – By far, one of the biggest benefits is instant approval. But be careful about this. A startup can get instantly approved for a new account, however, the provider will audit your file later on.

It may seem like an easy way to create a high-risk merchant account, but be sure you read the terms and conditions. Most aggregates don't allow certain business types that are found on the high-risk industry list. You may get accepted, but the payment aggregator will drop your account later on if you try to fly under the radar first.

2. Straightforward Pricing – Each major aggregate account competes with the others and therefore prices their processing fees similarly. These companies are very transparent with their payment structure which can easily be found on their websites.

The standard price for processing transactions is around 3% of the total sale plus an additional $0.25 per transaction. These transaction fees vary slightly depending on the service you're receiving, so be sure to select the one that saves you the most money. Look for lower transaction rates if your business has multiple transactions or lower overall percentage fees if you have large ticket sales.

3. Startup Friendly – New businesses want to save as much as possible to lower their bottom line. Moreover, they sometimes struggle with finding credit card processing solutions because they don't have a long history of successful transactions. Large payment processing companies understand a business owner's need to accept payments. As such, they take on new unestablished companies to give them the chance to grow their business with the resources they need.

4. Multiple Integrations – Working with some of the largest payment processors has its benefits when it comes to your merchant tool pouch. There are numerous additional services that can make it easier to run your business. Chargeback protection, gateway integrations, and accounting software just to name a few.

Who Are The Top Aggregate Merchant Account Providers?

Square, Stripe, and PayPal are the most well-known aggregate merchant account providers. These companies make up a majority of the low-risk space and can help you set up a new account fast if you operate a business in a standard vertical.

High-Risk Merchant Accounts

Importantly, high-risk merchants must seek alternative sources for their payment processing needs. Each of the major aggregate companies has its own regulations, and many don't allow certain business types. If you operate in an industry that sells adult products, regulated ingestibles like CBD and nutraceuticals, or firearms, then you'll have to look for alternative payment processing.

The good news is that many providers can help you get the high-risk credit card processing you require to operate. Zen Payments has a dedicated customer service team to help you through the application process. Learn more about how your company qualifies for custom pricing and payment solutions.

Why Choose Zen Payments as Your Aggregate Merchant Account Provider?

At Zen Payments, we specialize in supporting businesses with diverse payment processing needs. Unlike other credit card processors that work with just a few banks, we partner with multiple underwriting banks. Our connections with over 15 financial institutions allow us to find the perfect banking partner for your business.

Reach out to us today to set up your aggregate or direct merchant accounts, payment gateways, and any other payment solutions you need to accept credit card transactions. With a 98% approval rate and fast turnaround times, we’ll get your application through the underwriting process quickly, so you can start accepting online payments within one to two weeks.