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  #1  
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payment gateway vs merchant account


Could someone please explain the difference between these? Do you need both or just one or the other as cdgcommerce say they act as a payment gateway and deposit the money into your merchant account. Can you use them with a normal bank account as i don't think i'd be making the $10,000 odd $$$ per month needed for a merchant account.

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  #2  
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Roughly speaking; a payment gateway is simply where the buyer goes to the payment gateway's website to pay you (i.e. PayPal standard payments take you to PayPal.com to pay), whilst with a Merchant Account you can usually accept Credit Card payments via your website (and then you pass the CC details onto the mechant and they process them).

  #3  
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You just need one, though a merchant account is good to have if you can afford it because it shows you are more established and builds trust with your customers.

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  #4  
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I would check out PayLeap.

They offer a payment gateway and a merchant account all in one package with very competitive rates.

This simplifies the entire process cutting out the middle man and third-party resellers.

  #5  
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I agree that one should be enough, but having more then one can also be better.

  #6  
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You need both, the merchant account is provided by you Bank and as example, AuthorizeNet is a payment gateway, which makes the "connection" between your billing system to your merchant account.

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  #7  
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Hi

check this, you will get an idea..

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  #8  
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I'm thinking i'll just use paypal. seems a lot easier

  #9  
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Paypal is too heavy on cost though. You might get better rates and service from a reputated bank in your country.

  #10  
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Quote:
Originally Posted by smenkhare View Post
Could someone please explain the difference between these?
The payment gateway handles the transaction, and then the proceeds are put into a merchant account. You need both, but most payment gateways will help you set up the merchant account.

A company like MerchantPlus makes the process fairly easy:
http://www.merchantplus.com/

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  #11  
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If for example I go with merchantplus, do my customers get redirected to their site or can they enter all their details on my site?

  #12  
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Hello,

As bqinternet stated a merchant account is needed to use a payment gateway. Think of a retail terminal in your local store. That terminal is really a gateway. A gateway really is just an interface between the customer and the merchants processor. Also from what I have seen with many customers is that once you reach about that 1k a month in sales it becomes more costly to use paypal than a merchant account and gateway. Please also note that there are many merchant account providers out there and they all have gateways they offer. Some gateway will cost you per month and per transaction, some do not. The biggest thing to check before you sign anything is "Does the gateway they offer work with my software".

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  #13  
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Paypal payment gateway that takes you directly to paypal.com where the buyer goes to the payment gateway's website to pay you, and with a Merchant Account you can usually accept Credit Card payments via your website, then you pass the Credit Card (CC) details onto the merchant and then they process them.

  #14  
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Hi

you want directly accept CC in your site? i think www.authorize.net will provide this..

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  #15  
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If you do start start doing a decent amount of monthly sales, you should consider a merchant account because the fees are usually 1-3% less.

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