12 Mar The Difference Between a Merchant Account vs Payment Gateway
Are you planning on opening up an online store soon and looking for ways to accept payments? One of the best ways for accepting payments online is setting up a payment gateway. It can often be confusing and difficult to decide on which payment gateway to go with when setting up your online store. You need to understand the differences between a payment gateway versus a merchant account before you can start accepting payments for your store. Fortunately, it doesn’t take a long time to understand the differences between a payment gateway and the merchant account. Let’s go over some of the key differences between a merchant account versus payment gateway. Know What You Need To Know About Merchant Accounts ?
What Is a Payment Gateway?
A payment gateway is used for facilitating transactions online and helps get them approved. This gateway is also the first place a transaction goes to when one of your customers submit their order online. The transaction makes its way through the payment gateway, goes into the payment ecosystems, gets approved, and then it will make its way to the merchant account.
The merchant account is used to give the money to the merchant for their successful sales. These are all the funds that were approved by the payment ecosystem. You will get all of your approved payment from your merchant account. These are all the steps that are necessary before you can receive any payments into your business bank account.
You need to use a payment gateway if your merchant because it helps you process debit, credit, an alternative payment online. The reason you need access to the payment gateway is because retailers are not allowed to send customer payment information to a payment processor directly. Any information that a customer gives you that deals with a payment must be encrypted which is why you would need a payment gateway for your online store.
What Is a Merchant Account?
A merchant account is pretty similar to a business banking account. This type of account can accept credit, alternative payments, and debit cards. Money is readily available in a merchant account after a successful sale. A merchant account holds onto your money until you are ready to transfer it to your normal business account. You can set up your merchant account to transfer money to your business account on a weekly, biweekly, or monthly basis. It is necessary for you to have a merchant account otherwise your money will have nowhere to go after a successful sale.
It can be difficult to determine if you want a payment gateway or a merchant account. Hopefully, with the information shown above, you will be able to decide which one will work best for your online store. Many companies decide to go with a payment gateway because that helps ensure that their customer’s payment information is encrypted. There’re many different payment gateway systems they can go with, so be sure to look at each of their compatibilities. You’re also want to do the same thing if you’re looking for a merchant account for your online business. click at HTTPS://THESOUTHERNINSTITUTE.COM/CBD-OIL-MEXICO-MERCHANT-ACCOUNT