Both a merchant account and a payment gateway are essential to any online business. A payment gateway, in particular, will even increase the success of your online business by making the buying experience more streamlined, which will lead to an increase in the likelihood that purchases will be made and increase customer trust and credibility.
This will also create wider customer base. You may find yourself wondering what the difference between the two is and what to look for when choosing a merchant account and a payment gateway provider. Here is a guide.
What is a Payment Gateway?
A payment gateway is an e-commerce application that permits the authorization of credit card payments directly from your website. In order to have a payment gateway, a merchant account is necessary. Often a payment gateway service will also offer a merchant account. There are many benefits of a payment gateway, including:
- Quick and Secure Payments
- Protection Against Fraud and other Internet Scams
- Streamlined Payment Method for Customers therein Increasing Purchases
- Accepts Worldwide Payments = Wider Customer Base
- Improved Business Operations. Advanced management features, such as reports, returns and voids will also be offered by a good payment gateway provider.
What is a Merchant Account?
A merchant account is a business bank account that allows businesses to accept payments through credit cards or debit cards. It temporarily holds the money made from your online business. After a period of two to seven days, the money is then automatically transferred to your actual bank account. You will apply for a merchant account through a provider that offers the service.
How To Get Approved for a Merchant Account:
- Consider Writing a Cover Letter.
- Bring Your Financial Statements. This will allow you to get the best possible terms of approval.
What Features To Look for in Payment Gateway/Merchant Account Provider:
- Web-Based Application. This will ensure that you don’t have the extra trouble of installing additional software, downloading files or using any other equipment.
- Currency Support (Payment Gateway)
- Integrated Checkout
- No Application or Set-Up Fees (Free Consultation)
- No Volume Caps
- Quick Approval
- Customer Support
- Excellent Reputation in the Industry
Our payment experts have a long history in the industry with a strong reputation. MerchAct offers the easiest, fastest, most cost effective way to process credit cards, while also offering fast and affordable merchant accounts that cater to both high-risk and low-risk merchants from all around the world. Contact our team for a free consultation today.