1. A credit card processing bank; merchants receive credit for credit card receipts less a processing fee
   "The small business owner chose a reliable merchant bank for handling credit card transactions";
   - acquirer
    
2. A financial institution that provides services such as underwriting securities, facilitating mergers and acquisitions, and managing large investments
   "The company hired a merchant bank to handle its initial public offering";
   - investment bank

Derived forms: merchant banks

Type of: bank, banking company, banking concern, depository financial institution

Encyclopedia: Merchant bank