A merchant account is an agreement with a merchant account provider, sometimes called a merchant service provider, required to conduct credit card-based transactions. With a merchant account, the merchant agrees to honor certain obligations and the merchant account provider agrees to coordinate the transfer of monetary funds through the financial process. Merchant accounts can be obtained from merchant account providers like banks, financial institutions, processing gateways or from independent service organizations. There are several types of merchant accounts, those for use in "brick & mortar" retail establishments, those for use in mail and phone order businesses, and those for use with Internet storefronts. The terms and fees vary widely, both among and within the types. Generally speaking, the fees grow larger in accordance with the perceived level of fraud risk - in other words, your bank may charge less for a retail POS merchant account, where shoppers present their credit cards to you in person, vs. an Internet merchant account, where you have no personal interaction with the shopper.