Internet Merchant Account Vs. Payment Gateway

1. Internet Merchant Account Vs. Payment Gateway If you are new to the world of business, there is a very good chance that you are looking for ways to incorporate online payments. These days, a majority of customers pay via online transactions. And if you want to keep up with competitors in the market, the ability to accept online payments is a must. And amidst doing that, you might have heard two terms very often. Merchant account and payment gatewayonline. More than most times, these two terms are used interchangeably. However, they are not the same. In this article, we are going to tell you the difference between the two. What is an online merchant account? When the customer pays your business using a credit card or debit card payment, the money is supposed to be deposited somewhere. This is where a merchant account comes into the picture. It is a bank account that allows merchants to accept online payments. The fund deducted from the customer’s card is transferred to the merchant account. And then within 7 days, the funds are transferred to the business bank account. To open a merchant account, you can either get in touch with a merchant account provider in person or you can open one on the internet. The fees may vary depending on the nature of your business. What is a payment gateway? A payment gateway is something that keeps online payments rolling smoothly. The main task of a payment gateway is to capture and transfer the payment data from the customer to the acquirer. It also lets you know whether the payment request is affirmed or declined. Long story short, it acts as the middleman between the merchant’s website and its acquirer. Now that you know the difference between the two, also know that you can accept payments online without a merchant account.