Merchant Account And Payment Gateway – Know How!

Getting A Free Merchant Account With Payment Gateway By Quadrapay

  • A merchant account allows businesses to receive money through credit cards and debit cards. Such accounts are usually set up with the help of an independent processor that transfers money into the merchant’s business bank account. A merchant doesn’t receive a hundred percent of what the customer otherwise pays. Why? It is so because the merchant also has to pay interchange fee and a processing fee. Interchange fee goes into the credit card association while the merchant account provider receives a processing fee. Once a merchant’s business expands, he or she may start doing several transactions a month of which it may be difficult to keep a track. This is nothing to worry about because such accounts also provide merchant account panel through which a merchant can track these transactions. This service is one of the many benefits offered by a merchant account provider.
  • In simple words, in the field of e-commerce, the money that a customer pays online goes first into the merchant account before reaching a merchant’s business bank account. However don’t you think that there must be some mechanism in place to transfer money from a customer’s bank account to the merchant account? The mechanism or the process is called ‘payment gateway’, and it is payment gateways that connect e-commerce websites to credit/debit card processing networks, Net Banking/NEFT/IMPS/RTGS and such other payment options.

Merchant Account And Payment Gateways

Payment gateways serve an important function during online transactions as they not only provide security for sensitive information (provided by the customers while making payments) but also enable the customer to pay in multiple currencies. Moreover, just like e-commerce sites payment gateways also operate 24X7, and a customer is free to choose any payment option- credit card, debit card, prepaid card, online banking, UPI, etc. A merchant, on the other hand, has to keep factors such as set up costs, monthly fees, transaction fee, transactions costs, etc. in mind while choosing a payment gateway.

Payment Switch

Are you familiar with what a ‘payment switch’ is? Every time there is a request to pay online for a product or a service by a customer, the transaction is sent to the payment switch. The payment switch in turn forwards this information to the bank through which the customer is going to pay for the approval. Payment switch is very critical for such transactions, and the process is also called ‘transaction switching’.

Payment Gateways- Services

  • A safe and secure payment gateway would have powerful tools such as state-of-the-art fraud and risk identification system and knowledge base. They are easily adaptable and process transactions speedily with zero risk involved. With so many benefits to offer, these gateways not only accept payments from multiple sources but also prove themselves adept at retrying failed transactions, etc. Besides powerful tools, such gateways also provide successful marketing tools that may complement the marketing efforts of a merchant.
  • Payment gateways are the link between a customer and a seller; therefore, it is important that these channels also have a support mechanism for the customer and seller alike. A dynamic gateway would thus offer a 24X7 support for its customer apart from offering high-end smart analytics services like graphs, reports, event notifications, etc. for the seller.

Payment Gateway- Advantages

  • In today’s times, almost each one of us has tried her or his hand at online shopping. Those who frequently shop online on a particular website must have noticed their card details already present on the payment options page. All you have to do is enter the CVV number and the 3D password to complete the purchase process. This feature is made possible through ‘card storage vault’ provided by gateways. Card details or bank information is safely secured and encrypted to prevent its misuse by hackers, etc. Speedy transactions, better customer protection, repeat purchases all add up to the enriching experience of both the customer and the seller. A dynamic gateway with the help of this feature saves the customer a lot of time and in turn, helps the seller increase her or his sales rate.
  • With the advances in technology today, many payment gateway service providers have started providing high customizable experience for those merchants who do not have a website. In this, all that a merchant needs to do is to choose a template, provide a list of total items that she/he plans to sell, insert the add to cart option to each product and then link it to the gateway. Now you can start selling online. Most gateway service providers also offer applications through which a seller can upload the logo of her or his brand, modify the colour scheme, etc. Of course, all the above benefits would be incomplete without the availability of three most important features- maximum currency options, multiple currency processing and multilingual checkout page.
  • The availability of dynamic gateways provides merchants or retailers with the maximum market to sell their products online. A customer can easily choose products from categories such as music, handicrafts, travel, footwear, apparels, education, entertainment, insurance, hospitality, wellness, etc. A seller has to be diligent while choosing services of a payment partner and consider factors like credentials, experience and quality of service before reaching any decision. All these factors combined are crucial if a seller, a merchant, a retailer, etc. intends to expand her or his business.
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