This product is essentially a gateway. The same that Stripe or Braintree are gateways. They just do a much better job of abstracting the confusion that is payments.
You will still need a merchant account and a processor. A processor is the party that actually handles authorization/settlements between the issuing bank and acquiring banks.
Right - but Square/Stripe/Braintree supply the merchant account and the processor for me, so I can sign up, pay a transparent/upfront fee schedule, and get payments delivered to my (standard checking) account.
You will still need a merchant account and a processor. A processor is the party that actually handles authorization/settlements between the issuing bank and acquiring banks.