How is a Direct-Connect Merchant defined?

A Direct-Connect Merchant is defined as a merchant that directly enters authorization requests into specific bank networks. This method allows merchants to interface directly with payment networks or banking institutions, bypassing intermediary processors. Consequently, this can result in faster transaction processing times and potentially lower transaction fees, as the merchant has direct access to the payment infrastructure.

The focus on direct interaction with banking networks emphasizes the integration and communication aspect of transaction processing, which is key for merchants that prioritize efficiency and cost-effectiveness in handling their payment processes. This definition highlights the operational capabilities of Direct-Connect Merchants in contrast to other types of merchants that may utilize various platforms or intermediaries for processing transactions.