Merchants represent the locations of your business that will be participating in your loyalty or gift card program. You will need a merchant for every location that will be participating in the program, including online stores.
Merchants are essential for:
Transactions: To specify where the transaction has happened
Reports: To segment your gift and loyalty reports per location
Promotions: To specify where the promotion is valid and who pays for it
Clearinghouse: To manage the funds and reports related to your program liability