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  1. #1
    Join Date
    Sep 2008
    Location
    Sydney Australia
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    580

    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.

    Regards,
    Peter

  2. #2
    Join Date
    Sep 2006
    Location
    Cardiff - United Kingdom
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    1,568
    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. #3
    Join Date
    Aug 2004
    Location
    Orlando
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    1,272
    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. #4
    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. #5
    I agree that one should be enough, but having more then one can also be better.

  6. #6
    Join Date
    Apr 2001
    Location
    Paradise
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    11,633
    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. #7
    Join Date
    Apr 2009
    Location
    Tamilnadu, India.
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    227
    Hi

    check this, you will get an idea..
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  8. #8
    Join Date
    Sep 2008
    Location
    Sydney Australia
    Posts
    580
    I'm thinking i'll just use paypal. seems a lot easier

  9. #9
    Join Date
    Apr 2009
    Location
    Dallas/FortWorth TX
    Posts
    1,642
    Paypal is too heavy on cost though. You might get better rates and service from a reputated bank in your country.

  10. #10
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,551
    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. #11
    Join Date
    Sep 2008
    Location
    Sydney Australia
    Posts
    580
    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. #12
    Join Date
    Mar 2004
    Posts
    90
    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".
    If it works, do not mess with it.
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    If it does not work, replace it.
    CDG Commerce

  13. #13
    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. #14
    Join Date
    Apr 2009
    Location
    Tamilnadu, India.
    Posts
    227
    Hi

    you want directly accept CC in your site? i think www.authorize.net will provide this..
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  15. #15
    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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