What is a "merchant" in the context of payment processing?

In the context of payment processing, a "merchant" refers to a business or entity that accepts payment cards — including credit and debit cards — in exchange for goods or services. This definition is fundamental to understanding the roles within the payment card industry, particularly in relation to the PCI DSS (Payment Card Industry Data Security Standard).

Merchants play a crucial role in the payment ecosystem as they are the ones providing products or services to consumers while also handling the payment transactions. They are responsible for ensuring that they handle cardholder data securely and comply with PCI DSS requirements to safeguard sensitive information.

The other options describe different entities but do not fit the specific definition of a merchant. For example, financial institutions that issue credit cards are known as card issuers, while individuals who utilize credit cards for transactions are referred to as cardholders. Non-profit organizations may also accept donations through payment cards, but without the context of offering goods or services, they do not fit the straightforward definition of a merchant in the payment processing landscape. Therefore, the correct interpretation identifies the merchant as the business or entity engaging in the exchange of goods or services for payment card transactions.