What is the difference between a merchant account and a payment gateway?
I’m a new’be in web and I pretend to setup my online store. The question I have is … What is the difference between a merchant account and a payment gateway? and why do a merchant would require any of those services?
November 29th, 2008 at 9:42 am
A merchant account simply allows you to accept credit card payments and a payment gateway authenticates and authorizes individual credit card transactions.
Both are necessary if you’re setting up an online store and want to accept credit card payments. Some merchant accounts include the payment gateway, but most don’t.
December 2nd, 2008 at 1:41 pm
A merchant account allows you to take card payments. Some online processing services require you to have a merchant account to put card transactions through.
However the 3rd party payment gateway typically acts as a “middle man” removing the need for you to have your own merchant account to process transactions.
There are a number of distinct advantages to using gateway services particulalry when it comes to lower volume transactions. These are things such as reduced cost of implementation, security and PCI can be negated.
December 4th, 2008 at 6:45 pm
Basically, both allow you to accept credit cards as payment, however the payment gateway allows you to view individual charges online (usually payment gateways are suitable for ecommerce businesses).
Usually, a merchant account includes a payment gateway. If you sign up you should find one that includes the gateway. Check out this site for more info. or as an example: