LINKS

"
THE LOWEST RATES...
MOST BUSINESS TYPES...
WE SAY YES WHEN
OTHERS SAY NO...
7 DAY APPROVAL...
NO HIDDEN FEES...

"

 
 
1.800.393.3230
 
 


   

SOME FACTS ABOUT PAYMENT GATEWAYS, ECOMMERCE AND HIGH RISK MERCHANT ACCOUNTS

Every article about internet venture contains phrases such as “payment gateway” and “e – commerce payment processing”. If you are a new comer in the field then you should become a little knowledgeable about how a merchant account is different from a payment gateway which is sometimes referred to as “e – commerce” payment processor.

This article will help you in understanding how payment processing works and its costs and other options which will help you.

Here are some basic definitions:

Merchant Account

It is a particular type of account in a bank which is provided by the bank or any other financial institution. The account will have a contract with it.

The primary use or function of the merchant account is that it allows the account holder to accept payments through credit card from their customers. For this the credit card should be approved before each transaction and this product has a number of fees and also terms associated with it.

The merchant account not only allows you accept credit cards but, depending on the service provider and the services that you have opted for, you can also accept e – check’s and debit cards.

If your business is online then you need a payment gateway together with a merchant account to perform the same functions. You will also get a shopping cart which can be used by your customers to purchase and pay for the product that is selected by them.

The primary benefit that you get from the merchant account, for your online business is, your business will be automated and customers will be able to shop at any time. For offline businesses that have physical stores the merchant accounts will increase your sales because the customer tends to buy more, when he can pay using his credit card.

Payment Gateway

It is a direct link between your bank and the shopping cart, for processing of payments by the bank. This is done on the internet, in “real time” and needs authorization, management and processing for every transaction.

The difference must be very clear now. The merchant account is like a license which permits you to accept credit card payments and the payment gateway is a medium of receiving online payments through credit cards, debit cards and other options.

One important fact to point out is: having only the payment gateway will not allow you to accept credit card payments. A merchant account is required before you can accept credit cards for your business. Due to this reason, most of the merchant account providers also provide payment gateways and services related to them. An example would be authorize.net.

When you set up your business the marketing agencies of the account providing companies will come to you to sell their products. If you accept the offer, then you will not be charged for set up fees which would otherwise be there. Therefore, don’t just send these agents away thinking that they are wasting your time or trying to sell you sub – standard products. 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.