What is A Merchant Account or Payment Gateway?

Having an online business is one of the most rewarding experiences for any business owner. With the internet, a business can be visited from any point or location in the world. This increases a business the opportunity to expand sales and advertising. Many online businesses require online payment collection. If you want to collect payments and have them deposited to your bank account automatically, you will need a merchant account or payment gateway.

For many years, the only means of credit card transactions required a manual swipe of the user’s credit card followed by the signature of the credit card holder.

Electronic swipe machines or Point of Sale Terminals has made the use of the mechanical swipe machine less common. Although the older swipe machines are still used, many people prefer the more efficient transactions. By swiping your card through these machines, the magnetic strip is read and all of the card information is collected. These types of credit card machines have been used for years and have served their purpose well. With online shopping all the rage now, most people conduct business transactions on a website. Because of this, the payment gateway was developed.

The payment gateway is like a virtual credit card machine. The payment gateway collects the cards information and then processes it. By using a special code, this transaction is done through your website and is accomplished in real time. The code connects your website with other servers that request authorization for purchases. A merchant account provider usually provides these services.

A Merchant Account offers several benefits. First, using this system makes it possible to receive online credit card payments through your ecommerce website. The account will also allow these funds to be deposited directly to your bank account. Best of all, this type of system offers hassle free service. No worries for you means no repeated checking the bank account to see if the funds have been sent. This means you have more time to focus on your business and your clients. You can rely on the account to take care of the transactions. This system offers you a way of handling online payment transactions with a professional and secure process.

From gum balls to web design, a merchant account will give you the peace of mind that your business transactions are being handled in an efficient safe manner.