If you are new to the world Internet commerce, one of the first decisions you will need to make is how you are going to accept payments from your customers. If you are considering applying for a merchant account and a payment gateway system, the following information will assist you in deciding if this is the payment approach that will ultimately be the most beneficial for your business.
Merchant Accounts
A merchant account is a bank account that you open in the name of your business so you can accept payments from customers for the goods and services your company provides them. In order to get a merchant account established, you must apply for one from a bank. If it is approved, you will be presented with a contract outlining the terms you are bound by and a listing of fees for each type of transaction.
After your merchant account has been established, you will be able to accept credit card payments from the major issuers like Visa and Mastercard. Depending on the capabilities of the issuing bank, you may also be able to accept debit card and electronic check payments. This gives your customers the ability to shop online at your Internet store 24 hours a day, 7 days a week.
Payment Gateway Systems
In order to use your merchant account, you must also have a payment gateway system. This is what allows your customers to have an electronic shopping cart available and to go through the check-out process once their order is completed. When the customer enters his or her credit card information, the account will be authorized or declined in real-time for the total amount of the purchase being made from your online store. A payment gateway is the system that allows access to the customer’s credit information.
Understanding the Difference
In understanding the difference between a merchant account and a payment gateway system, it is helpful to think of the former as permission to accept credit card payments while the latter gives you the actual ability to do so. To receive a merchant account, you must be approved for one, and the guidelines can be rather stringent. It can also can take as long as one month for your business to get approved for a merchant account. Once it is approved, there will be fees involved in getting it set up and monthly maintenance fees.
Another Option
If your business deals in smaller volume or if you have trouble qualifying for a merchant account, you may want to consider a third-party payment gateway system to handle your credit transaction needs. These options offer a fairly easy to implement and clear pricing structure, however you do pay a premium for this simplicity and lack of control. Individuals that are processing more than $500 a month would be better served finding a true merchant account and payment gateway for their processing needs.
Stay or Switch from To Another Merchant Service?
Are you unhappy or happy with credit card procesor services ? Share your comments, insights, honest opinions, service levels from merchant account . Have you been Shutoff, Closed, Denied, Cancelled by ? What are the ratings for ? Post your experiences with on Sales Practices, Length of Contract, Hidden Fees, Early Termination Fees, Problems with , Chargebacks, Extra Fees, Transaction Rates, Contracts, Contacts, Support, Services . Find lower cost merchant account processor quotes and comparisons no contract service providers that have cheaper rates then . Leave your customer rating and review of below.
Loading