Physical Address vs Virtual Address for Business Banking & Merchant Accounts

I'm trying to understand the difference between a physical business address and a virtual address.

I've heard that some banks and payment processors may not accept virtual addresses and prefer a real physical location for compliance and verification purposes.

For those who have dealt with this:

• What qualifies as a physical business address?
• Is a virtual mailbox service enough?
• What are some affordable ways to obtain a legitimate physical business address?
• Can a home address be used for business banking and merchant accounts?
• What has been your experience with banks or payment processors regarding virtual addresses?

Any advice or recommendations would be greatly appreciated.

Thanks!