Why use a payment gateway for your business?
In our digital age more and more businesses are creating an online presence. If you are a business that takes credit cards online from customers, a payment gateway is an essential part of your day mobile payment to day business. If you’re thinking of creating an online presence then understanding what a gateway does is essential.
A payment gateway creates a secure place for your customers to pay for merchandise. With the integration of a gateway and shopping cart solution to your web page you can accept payments for orders safely online, and and never having to be sure you portion out your critical at the end of the day.
A gateway now offers benefits for the merchant deploying it. Many of today’s gateways offer a multitude of features that produce running your business easier and less time consuming. If you’re building your website yourself you may not be entirely comfortable with the process of integrating a shopping cart solution to your gateway before adding it to your page. Many gateways are available with the shopping cart solution already added. All that’s required of the site builder is putting the html code into the site.
Gateways also offer features that a traditional critical can not. Recurring accounts receivable is the most widely requested feature by merchants. Gateways allow you to enter the contract and accounts receivable information once, and then you’re done. You tell the machine when to bill the card, and you’ll receive an e-mail hinting if the transaction was approved or not. You won’t have to spend your valuable time with hand charging cards every, and there will be no disregarding to charge them.
Another selling point of the gateway is the ability to tie it into your QuickBooks program. If a gateway is defined up with the QuickBooks plug in you’ll be able to easily scan data from your gateway to QuickBooks, eliminating time consuming double entries.
Gateways offer real-time processing feedback, letting both you and your customer know immediately if the credit card being used was approved. It also allows a merchant to accumulate Level II data easily which will eliminate some of the costly downgrades that can occur when a merchant is a.
Best for the merchant and the customers, gateways offer added security and additional time for the business owner to pay attention to growth.
For this and other information about Internet Payment Gateways and electronic commerce please visit [http://www.mymark.com/blog/jimanderson]. Jim Anderson is the CEO of Electronic Commerce International, an ISO located in Nevada, NV. Please visit him at [http://www.mymark.com/jimanderson] for more information about Jim and Electronic Commerce International.
Merchant account is a retailer’s bank account that enables payments from consumers’ credit or debit cards. Payment gateway on the other hand, is not a bank account but it only acts as a critical for confirmation and consent of transactions in credit card processing.
Merchant account and payment gateways are sometimes conjectured as you for the fact that both deals with financial transactions. But actually they are both distinctive from each other though they are partners in the matters of online business and financial transactions.
What a merchant account is
It is a type of bank account that enables credit or debit card payments for goods or any services offered in a business. It practically copes with all the financial transactions in your business such as payments.
Many chose to have a merchant account because it has great benefits to the retailers and the consumers. To the buyers, it saves them time and the problem of paying cash-only payments. They can buy expensive stuffs too from stores without worrying about bringing large amounts of money on their purses. To the sellers, it saves them from constantly selecting all the cash and checks in their business because everything would be done in an electronic format.
Getting a merchant account isn’t easy and it is not for free, meaning account providers charge fees to every transactions and services manufactured in the merchant account. That is why there are terms, conditions and policies that retailers should know and certain factors that retailers should look into before a merchant account could be approved by any account providers. These factors are very crucial too to account providers because these factors will give them the assurance that your business would be strong enough against economic instabilities or financial crisis because account providers too are affected when that takes place.
What a payment gateway is
Payment gateway is not a bank-account but serves as an consent and confirmation agent on behalf of owner. It is the middle line between retailers online store to the financial transactions between the consumers credit or debit card to the retailers merchant account. It acts as a critical for credit or debit card agreement and transaction details encryptions.
Payment gateways are very helpful in marketers. It is in online business that a payment gateway is associated with a merchant account.
Here’s how payment gateway works in online sales processing to let you know how it is not the same as a merchant account:
- Buyer visits a business site and decides on things that he wants to buy.
- The purchaser then receives a copy reviewing all of the items he selected and when the rope clicks on the “buy me” button when he’s sure regarding his purchases.
- All items selected will be placed in the electronic shopping cart solution meaning that it is being ordered.
- The individuals are then asked to put some details about their credit or debit card accounts before completing the buying process.
- When confirmed, the site will pass the transaction details to the payment gateway. The payment gateway will send transaction information to the bank in which the patron’s card was issued.
- The giving bank will give a respond to the payment gateway whether it was approved or not. If approved the customer’s credit card will be debited and the retailer’s account will be credited.
