What is a merchant account primarily used for?

A merchant account is primarily utilized for processing and facilitating credit and debit card transactions for businesses. This specialized bank account allows merchants to accept payments electronically from customers, which is essential in today's commerce environment where credit and debit cards are a predominant form of payment.

When customers make purchases using their cards, the funds are transferred from the customer's bank to the merchant account, where the business can later access these funds. This process is critical for enabling cashless transactions, providing businesses with the necessary tools to manage sales effectively.

The other options do not align with the primary function of a merchant account. For instance, depositing cash directly, providing loans to customers, and maintaining personal savings pertain to different financial services or account types that do not focus on the processing of electronic payments. Understanding the specific use of a merchant account is vital for those involved in retail or any service-dependent business.