What term is used to describe a business that accepts credit or debit cards for payment?

The term that describes a business that accepts credit or debit cards for payment is "Merchant." This definition is foundational in the payments ecosystem, as merchants are the entities that provide goods or services to consumers and enable transactions through credit and debit card processing. Merchants can range from small local businesses to large online retailers, and their ability to accept card payments is essential for facilitating sales and improving customer convenience.

The other terms have specific roles that don't encompass the idea of accepting card payments. A bank typically refers to a financial institution that offers various services, including the issuance of credit and debit cards. A processor is a technology or service provider that handles the transactions between the merchant and the financial institutions, ensuring that payments are properly authorized and settled. A cardholder is an individual who owns and uses a credit or debit card but does not refer to the business aspect of card acceptance. Understanding the distinction between these roles is crucial in comprehending the payment transaction environment.