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Thread: payment gateway and/or merchant account

  1. #1
    MaryAnn Guest

    Default payment gateway and/or merchant account

    why do I need both a payment gateway and merchant account, aren't they the same thing? I am very confused. Please help me. Paypal limited my account and then closed it, holding my money for 180 days and I need to find a way to be able to take payments again but this is all new to me.

  2. #2
    Chris P Guest

    Default

    You need both and most merchant account providers will provide you with both when you sign up. Think of the payment gateway as your online credit card terminal and the merchant account makes sure you get your money in to your bank account.

  3. #3
    Unregistered Guest

    Default

    avoid paypal's payment gateway PayPal Payments Pro. Just like everything else with paypal it is a total ripoff

  4. #4
    Unregistered Guest

    Default

    Quote Originally Posted by Unregistered View Post
    avoid paypal's payment gateway PayPal Payments Pro. Just like everything else with paypal it is a total ripoff
    PayPal Payments Pro is short for PayPal Payments Professionals at stealing your money! You have been warned.

  5. #5
    Unregistered Guest

    Default

    Quote Originally Posted by MaryAnn View Post
    why do I need both a payment gateway and merchant account, aren't they the same thing? I am very confused. Please help me. Paypal limited my account and then closed it, holding my money for 180 days and I need to find a way to be able to take payments again but this is all new to me.
    yes you need both. it may seem confusing so make sure you go with acompany that can explain everything to you and once you figure it out you will be amazed how hassle free it is compared to paypal.

  6. #6
    Join Date
    Jan 2014
    Posts
    24

    Default

    Let's say you're selling items at a website.
    In order to take creditcard payments you will need:

    A shoppingcart to take the order and shipping details.

    A merchant account to take the creditcard payment.

    A gateway for the payment information to be transferred to the merchant account provider "safely".

    A bank account for the merchant provider to place your money into when your account settles each business day.

    If you get a subscription to one of the all-in-one providers this is all included and you most likely won't have to configure any of this stuff separately.

    But that is the process and all the pieces in play when you order online.

    I shopped for the best of each and built my own website back in the day so I had to learn this junk.

  7. #7

    Default

    that was a very good example of how it works...but let me see if I can add a little more color:

    There are several players in the ecommerce world:

    The Merchant (you)
    The Buyer
    The Payment Processor

    Now, when you, the Merchant, puts something up for sale, you have to enable the Buyer to be able to pay you for it before you deliver the goods. You have to have a Buy button, which is normally provided by your ecommerce website poin t of sale software or web designer. You also need to have a Payment Processor who will receive the transaction and make the magic happen behind the curtain in order to facilitate the movement of money between the Buyer and the Merchant. In some cases, the Payment Provider can supply the Point of Sale software, the secure tunnel for transaction transmission (the Gateway), and the movement of money between the Buyer and the Merchant (interchange). This is known as a turnkey solution. However, some Payment Processors only provide Interchange services, which means that you have to find someone else to provide the Point of Sale software and/or the Gateway.

    Regardless of who provides it, you have to have all of these moving parts in place for you can accept electronic payments for people. Paypal provides all of this functionality, which makes it very attractive to those just getting started or who have small volumes. However, they mark the per transaction fee up pretty high and, of course, have a lot of control over how you conduct your business, when you get your money, etc. This is one of the pitfalls of using this type of turnkey solution.

  8. #8
    Join Date
    Jan 2014
    Posts
    210

    Default

    There are different types of account, merchant accounts let u sed and receive large sumz of money, while the gateway allows you to process payments, they are very different.

  9. #9
    Join Date
    Jan 2014
    Posts
    4

    Default

    Payment processing, termed as a money transactions which will occur between the shopper and merchant. It is usually a third-party service and done by the system of computer process. These flexible end-to-end payment services streamline everything from completing the sales transaction to merchant support and information reporting, so you can run your business efficiently and profitably.

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