Misconception Behind A Merchant Account And A Payment Gateway
Every merchant knows that accepting payments from their customers is the most crucial aspect of their business. Even merchants know that if they don’t adopt the latest trend of the digital payment system, they may lag behind their business. But when it comes to opting a payment solution, there is a common misconception about merchant services. They get confused which one is better for them, a merchant account or a payment gateway? Does a merchant require both? Or only a merchant account can fulfil their businesses requirement? Well, a Merchant Account and a Payment Gateway both are vital to run a business and accept payments seamlessly. And businesses get both the solutions under one roof. In fact, both solutions have their own importance and work differently.
We at Quadrapay partnered with several Merchant Service Providers across the globe. Our partnered processors help businesses to get various payment services under one roof.
How To Differentiate Between A Merchant Account And Payment Gateway
The merchant account and a payment gateway, both play a vital role in accepting credit card payments or other digital payment services. But still, merchants get confused about what exactly they are and how do they work? Well, a payment gateway is just a channel through which transactional information flows in a secured manner. And a merchant account is where the funds get settled for a temporary period. Let’s understand this by example.
Let’s say a merchant has its own website and he wants to accept credit card payments online. To achieve this he needs a payment gateway and a merchant account. When a customer pays a merchant, he is redirected to the checkout page which is a feature of payment gateway. Once the customer fills the payment details, the transaction data from the checkout page goes to the payment gateway. The gateway further facilitates the flow of data until the transaction gets successful. Now comes to the role of a merchant account. As soon as the gateway receives the approved status code, it shows the approved status to the customers. The money gets deducted from the customer’s bank account, and the funds then go to the merchant account.
How Merchant Services Benefit Your Business?
There are a bunch of services to choose for your business offered by a merchant service provider. The services include credit card processing, eCheck/ACH processing, or eCommerce payment gateway. These are the common services offered by the processors. Apart from this, there are several additional services like:
FAQ – Questionnaire Related To Merchant Account And Payment Gateway
- What Is A Payment Gateway And Payment Processor? A payment gateway is a crucial component of an eCommerce platform. It is a software service that connects the merchant’s website with the acquiring bank. The gateway facilitates the payment and authorizes the transaction. It is a service provided to merchants by the Merchant Service Provider, also known as a Payment Processor.
- What Is A Merchant Account And A Business Bank Account? A merchant account is an exclusive bank account that allows businesses to accept credit/debit card payments. It is just a holding bank account that holds all the funds received by customers via credit/debit cards. Money can not be moved in or out as like in a traditional bank account. Even a merchant can’t access it to transfer the funds. The held funds get transferred automatically from the merchant account to the merchant’s traditional bank account. This is what is known as a business bank account.
- What Are The Roles Of Acquiring Bank And Issuing Bank In Payment Processing?
The issuing bank or issuer and the acquiring bank are the financial institutions that help in payment processing. The acquiring bank passes the transactional information from the payment gateway to the issuing bank. The issuing bank issues the credit cards to the consumers. The issuing bank confirms that the customer has sufficient balance and proceeds with the transaction. After receiving the payments from the issuing bank, the acquirer bank sends the transaction status to the payment gateway. And thus the payment gateway shows the transaction as approved or declined to the consumer.
- How Do Businesses Get A Merchant Account And Payment Gateway Online With Quadrapay?
The process is simple and easy. Everything is online and hassle-free. To get started, a merchant needs to fill the pre-approval form, and we get back to further assist them. If a merchant is involved in the legal business, then he may go online in less than 24 hours. If they further face any issues, our dedicated customer supports ready to help 24×7.
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