Ultimate Guide: Difference Between Payment Gateway & E-Commerce Merchant Account

The world of business is now full of terminology that is such a challenging task to understand first. Before going to start working on it is important to learn the concept from the core. Try not to invest your money, time, and efforts in resources that are unfamiliar to you. In this blog, we are going to look at some of the Payment processing gateways and E-Commerce Merchant Accounts to deep diving to differentiate their concept. 



Basic Understanding Of E-Commerce Payment Gateway


Online payment gateway is the basic technology that merchants use to use online transaction payments from customers. For e-commerce, payments and personal information are entered. (That is, the online checkout page.) The payment gateway applies industry-standard encryption when transferring customer payment information to the business owner's account. This protects the transaction and protects both parties and their accounts from fraud.


Importance of Merchant Accounts 


Merchant Account is considered as the type of business bank account specially created to accept online payments. Most business owners typically prove the merchant account by connecting with the acquiring banks. In any kind of E-commerce business, the payment that business owner receives online is first credited in their merchant account for verification. After the successful verification, the money will be credited to their bank account. 



Difference Between Payment Gateway and Merchant Accounts 


When it comes to comparing the payment gateway vs merchant account there is some type of differences between them. It works in the pair during the online transaction process. Payment gateways are the technology behind accepting or rejecting payments. Once the payment is accepted, the money earned from the transaction will be transferred to your merchant account and temporarily stored until it is transferred to your business bank account.


Advantages of Using The Payment Gateways And Merchant Accounts 


Using the Payment Gateways and Merchant Accounts enhances the business growth based on the payment transactions. There are plenty of advantages for both sides of the transaction. The user can offer convenient payment options and business owners to ensure the security and safety of online transactions. 

If your business wants to accept debit cards and credit cards while purchasing things online and making online transactions. To make the online payment you need a payment gateway and merchant accounts because they both are working together to process payments online. In case your business is won’t accept payments via POS Card terminal or some online needs you neither need the payment gateways nor a merchant account for your E-Commerce Credit Card Processing. 


Aspects To Be Considered While Choosing Payment Gateway And Merchant Accounts 


There is a list of the important aspects that you should need to be considered when you’re looking for merchant accounts and payment gateways: 


Currency: You need a merchant account to accept the payments in the currency in which you’re currently working. 


Access:  It is the cherry on the cake when you’re getting the bonus in your acquiring bank to allow access to the account for payments. 


Price: Payment gateways have different price points, so consider the one that best fits your business budget. 


Functions: Gateways can provide intelligent chargeback management, electronic billing, customer reminders, and more. 


Integration and Security: Perhaps most importantly, payment gateways need to be easy to integrate and provide a high level of security.


Final Thoughts 


In Nutshell, Merchant accounts and payment gateways are two completely different terms. A merchant account is a type of bank account that temporarily stores customer payments until confirmation is complete. A payment gateway is a technology that securely accepts POS card terminals and electronic payments. If you’re looking for the leading experts to work on high-risk E-commerce Merchant Accounts get in touch with Leap Payments to make your online transaction easier. 

Location: Texas, USA

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