A merchant account is setup between a merchant, a bank, and a credit card processing company. It is not a bank account. A merchant account is an agreement that allows the merchant to accept credit cards for payment.

After a transaction has been approved and settled, the credit card processor deposits the funds directly into the merchant's bank account. This deposit usually takes place within 1 or 2 business days. The bank account can be at whatever bank the merchant chooses.

The credit card company is essentially offering your customers 30 day payment terms and assume the payment risk. For that convenience, the merchant pays a small fee on every transaction.