Learn the Difference Between Payment Gateway and Merchant Account

Merchant account is the basic necessity for the businessman and apart from that a smooth payment gateway.  Both have an equivalent ratio for the smooth and balanced working of the business.

Merchant Account

A type of account that allows accepting online payment from the customers through many ways under legal wings of the payment service provider.

Merchant The account is created under the mutual agreement between a merchant and merchant’s acquiring a bank, so to further proceed with future online payment.

Meaning Of Payment Gateway

A payment gateway is a software program that works behind the scene. It is basically a process that enables the flow of the payment securely. It’s a secure way to transfer your customer’s money safely into your merchant account. It’s really very important to have a payment gateway for the following reasons:

• It creates a trustworthy aura between you and your customers.

• It maintains a good graph in the competitive world.

• Prevents your money from fraudulent activities.

• Keeps you away from any future threat.

Short Overview

Above mentioned content shows the nature of the account, now below we can compare both of them:

• Merchant Account is an account where the funds are deposited and payment gateway is the channel from which we receive our payments.

• Merchant account holders get their amount through the payment gateway

• Merchant Account holds the money, which they earn from selling their goods/services and with the help of a payment gateway, they get their amount secured under the safety of the acquiring bank.

• Payment Gateway gives a piece of evidence for the particular transaction for future Disputes.

MerchantStronghold

A place where you will get solutions to every query. We undertake many responsibilities such as Opening Merchant Accounts, Merchant Account Underwriting, Secure Payment Gateways, High-Risk Merchant Account & Low-Risk Merchant Account profile management and much more.

If the vision is still vague, you can approach us frequently through our website https://www.merchantstronghold.com/or through our telephonic support, we are available here 24*7. Contact us on +1 (888) 622 – 6875.

How To Setup Payment Gateway for Online Business

Additional Fees for the Services

The transaction processing fees and other fees for the services can affect your profit. As a merchant, you should compare the payment processing fees of the services and then get the one that is required. Here are the different fees or charges that a payment gateway service provider can ask.

• Monthly fees
• Setup fees
• Termination Fees
• IRS (Internal Revenue Service) fees
• Batch fees
• Annual fees
• Contract Fees
• Customer service fees
• PCI (Payment Card Industry) compliance fees
• Statement fees

These are the list of fees that a payment gateway provider can ask. There could be more than what is available in the list above.

Security and Customer Service

When you are Comparing Payment Gateway Provider, you must check the security and customer services provided by the different service providers.

A security breach can affect not only the merchant but also the customer’s money.

Make sure you read the terms and conditions of the company.

You must check the kind of security they provide.

Moreover, check the support provided by the gateway service provider in case of fraud and chargeback.

Allowed Card and Payment Types

Types of cards and payment types should be allowed while accepting the payment to help the merchants to compare Payment Gateway provider. Here is the list of popular Card Service Providers:

• VISA
• MasterCard
• American Express
• Discover
• JCB
• Diner

You must choose the card acceptance according to your customers. Also, compare the Payment Gateway provider depending on the majority of card payments you get.

Customer Friendly

The Payment Gateway should be interactive and easy to use for the customers. That means the customers with or without technical knowledge should be able to use the Payment Services with ease.

Check whether the services are available on mobile phones or not.

As most users now make their transaction using mobile phones.

Moreover, their response and the waiting time for each payment should also be taken into consideration.

If you're looking for merchant services & Payment gateway related information, you can contact us @ +1(888) 622-6875. 

Also, you can contact via email - info@merchantstronghold.com