Almost every online business will accept online payment, which could be a debit card, credit card, online banking or through electronic wallets from their customers. Every type of business that offers these services will be aware of what merchant account means. And if you are a new player to this kind of business, you will be confused between payment gateway and merchant account. Most of the gateway providers offer both the services. So, before opting for any gateway provider service, just keep in mind to go through their terms, conditions and policies.
Whatever is the size of your business – small or large, ensure that you are selecting the right one. Check whether you are looking for both the services – payment gateway and merchant account or only one.
If your business is holding a merchant account, it means your business can allow a multiple number of online payments. This plays a major role between credit card processing companies and retailers. This type of business allows their customers to have secured, fast and flexible payment selections. This can be including various payment options online like debit card, credit card, and other available options.
In this competitive market, if your business is set up with merchant account, it can help in increasing the transactions flow online. Retailers can authorize any kind of payment by using a gateway provider with ease and secured options from any electronic device like mobile, phone or tablet.
Payment gateways work exactly how the credit card machine works. Your customers need to enter the required information on the web page and then this payment gateway will allow your business to accept the payment online. Successful transactions will continue from the payment gateway page to the bank authorization and then to cardholders. The funds will be transferred from user’s card to the dealer’s account once the authorization is approved.
Your customers’ payment information is very sensitive and confidential. So, make sure they are PCI compliant. Security is very important in the online payment field. To minimize the risk, use payment gateway for technical support that can deal with all online frauds.
Many professionals mix both these services by misunderstanding and often getting confused. So, while setting up a business, understand what kind of business you are planning for and what is the right choice to set up this account. Do a research, talk to experts and determine how useful it can be to your business growth.