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Difference between FOREX payment gateways and FOREX merchant accounts

If a person decides on opening an online store, it is mandatory from him/her to be familiar with payment gateways and merchant accounts. For receiving payment made by online transactions, a trader will need to possess some kind of merchant account. Though banks provide merchant accounts, one needs to be prepared to shell out considerable amount of money. If this is something that a trader wants to avoid, then one can look for the popular ecommerce accounts that are available online. With the growing popularity of ecommerce business, it is pretty easy these days to acquire a merchant account.

A payment gateways works as a go-between for the financial institutions and trader’s shopping cart. The payment gateways are invisible to shoppers and are known to handle the transactions between merchant accounts and the financial institution of a consumer. This happens when a consumer clicks on the “buy” button.

There also exist third party card processors like PayPal. These processors higher amounts for each transaction but no monthly charges are taken. Third party credit card processors are the best option for starters and small business owners since most of the traders have PayPal accounts. Once a trader has established his business, he/she may need to get into payment gateways and merchant accounts to save funds.

All the transactions by default go through payment gateways. These gateways are known to provide data back and forth the sellers and buyer’s financial network. Once this has been done, the fund from a seller’s account is transferred to the merchant account.

It is very important to checks the deference in charges and rates before a merchant account and a payment gateway is chosen. It is always better not to select the first company which a trader comes across right away. It is best to do some investigations else a trader may quickly end up losing his money. The rates and services for both the merchant accounts and payment gateways need to be checked well in advance. The ultimate goal is to get more number of services at reasonable prices. However, this does not imply that one should select the cheapest prices. A person usually gets what he/she pays for; this holds true for ecommerce also.

It is necessary to ensure that no hidden prices are involved with any kind of payment gateway or merchant account. If all the charges that will be incurred are not shown, it is always advisable not to opt for such services. There are a few reputable services as well as non-reputable ones; hence a trader should know what he/she is getting.

A merchant account works in support of a seller but payment gateways serve as data ports for the financial networks in a transaction. This will include both the seller as well as the buyer. Without merchant accounts, sellers cannot receive funds made by online transactions. Without payment gateways, a transaction just cannot take place. This is the primary difference between payment gateways and merchant accounts. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.