The business world has a lot of terminologies, and most of them may be hard to understand in the beginning. Whereas most business terms can feel terrifying, it is essential to understand their concepts. Accomplishing so assures you don’t spend funds, time, and other precious resources on something unknown to you. Today, we will describe the payment gateway and merchant account and go deeper into the details of distinguishing them.
What is a Payment Gateway?
A payment gateway is a mechanism merchants prefer to receive online payments from their customers. In a brick-and-mortar store, the payment gateway functions at the POS card terminal. Whereas online, it functions where one enters payment and personal details. (In other terms, the online checkout platform). The payment gateway implicates industry-standard encryption during the transmission of the client’s payment details to the business dealer’s account. This protects the account, securing both partaking members, as well as their accounts, from fraud and scams.
How does a payment gateway function?
At physical stores, the POS card terminal is linked to a cable to transfer and accept details. Yet, in online businesses, payment details are transferred and accepted via an application programming interface (API), which enables two applications to convey. In this situation, an API enables a payment gateway to convey with an online merchant account.
However, when comparing different eCommerce stores, you can check how their payment gateways function similarly, but with little differences. In some stores, “Buy It Now” diverts you to the checkout platform. This is how some eCommerce payment gateways function. There, you can select an online payment method and shipping procedure, access the order amount with the pricing structure, and confirm and payment confirmed. On other eCommerce websites, you will add a product to the cart, go to the card, press “proceed to checkout”, and then access their payment platform. At this moment, you can specify similar details as on another high-risk payment gateway, but with some extra features.
What is a Merchant Account?
A merchant account is a sort of business bank account basically made to receive transactions. An online merchant basically gets a merchant account by associating with payment service providers or merchant-acquiring banks. The funds that a business merchant accepts for payment first send into their merchant account. When the payment is confirmed, the fund transfers from their merchant account to their bank account.
What is the Dissimilarity Between a Merchant Account and a Payment Gateway?
When resembling a payment gateway and a merchant account, there are primary dissimilarities between both of them, but they function collectively during the transaction procedure. The payment gateway is the technology behind receiving or rejecting payments. When the transaction is approved, the funds earned from the payment transfer to the merchant account, where it’s stored for some time until it is transmitted to the merchant’s business bank account.
Benefits of Preferring Merchant Accounts and Payment Gateways
Preferring payment gateways and merchant accounts expands a business’s client base by extending the forms of received funds for online payments. These are advantages of both sections of the transaction. Customers are delivered various, suitable payment modes, and business merchants are ensured of the security of these transactions.
Merchant Account vs Payment Gateway: Which does your online Business Require Significantly?
When operating an online business, if you want to receive credit cards as a mode of payment, it will require a payment gateway and merchant account because they function collectively to process and then keep funds from online payments. Yet, a business unconcerned with accepting payments via POS card terminal or online requires a payment gateway with a merchant account.
How to Acquire the Best Merchant Account and Payment Gateway for Your Online Business?
It is significant to select merchant accounts and offshore payment gateways that suit your business requirements. By conducting a little bit of research, you can be able to find both that will streamline your regular business functionalities.
Factors to look for when obtaining a payment gateway and a merchant account
There are some important factors that you should regard and look for when acquiring a merchant account and a payment gateway:
⦁ Multi-currency payments
You will need to prefer a merchant account that receives payments in different currencies so that your customers can pay in their desired currency.
⦁ Accessibility
It is an extra bonus and essential if your preferred payment service provider enables you to access your merchant account whenever you want and 24*7.
⦁ Payment Processing Limits
Payment processing limits are another factor to consider when selecting a payment gateway solution. Because no bars on payment processing help in expanding your client base and increase your business revenue.
⦁ Pricing structure
Payment services have different pricing structures, so opt for a payment processor which is most suitable for your online business and also affordable.
⦁ Global coverage
Everyone wants to drive their online business globally, so acquiring a global payment gateway solution with global coverage is significant. So, customers from across the globe can access your products or services from anywhere.
⦁ Chargeback and fraud prevention feature
The payment service provider you select must have to deliver a payment processing solution with smart chargeback prevention features, online invoicing, advanced fraud prevention features, real-time reporting for customers, and many more.
⦁ Fast and smooth integration
It is most significant that a payment gateway solution should be fast and smooth to integrate with your online website.
⦁ Security
Your preferred payment processor must deliver a high-risk payment gateway with a high level of security and PCI-DSS-compliant payment gateway solution.
⦁ Alternative Payment Methods
If you want to run your business globally, you will need to offer alternative payment methods to enable your customers to pay via their choice of payment method. So, your selected payment service provider must have to provide you with various online payment methods.
⦁ 24*7 Customer Support
Processing online payments can be a difficult process or you may experience some payment-related issues. So before finalizing your payment gateway ask for customer support that is available 24*7 to assist you at the same time when any problem occurs.
Conclusion
Last, but not least, merchant accounts and payment gateways are completely different things. An international merchant account is a sort of bank account that keep customer payments for some time until the verification is not done. Whereas, a payment gateway is a mechanism that receives online payments made via different payment methods securely and processes them quickly.
The primary thing to focus on is to prefer the best payment service and provider. Because your business’s payment processing part completely depends on your payment gateway solution. So, you will have to conduct proper research and consider all these factors stated above to get the most secure and reliable payment solutions.
You can opt for WebPays if you want to avail your business of all the significant benefits. WebPays is one of the leading payment service providers and has great expertise in serving high-risk businesses for many years. You can trust us and acquire the best suitable payment processing services for your online business.
For further information, you can visit our website WebPays.com. And drop us a mail with your business structure and payment requirements, and our expert team will analyze your application and business requirements to provide you with the best suitable and secure high-risk payment gateway in Europe. We will also assist you in enhancing your business revenue and driving your online business globally with top-notch security features.
You are just one step away from your choice of offshore payment gateway solution.
