What is a payment gateway and merchant account?

A merchant account is a type of bank account that lets your business accept multiple forms of payment, including credit cards, debit cards, and ACH payments. An online payment gateway works like a credit card machine in a sense: It allows your customers to submit payment information via the web.

What is a merchant account for ecommerce?

An “ecommerce merchant account” typically refers to an account where ecommerce businesses can accept online payments.

Which type of e-commerce is payment gateway?

A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.

Do I need merchant account for payment gateway?

A merchant account enables you to accept credit/debit card payments via the Internet. You will need a merchant account if you want to process transactions from your website using a payment gateway.

Which payment gateway is best for ecommerce website in India?

Best Online Payment Gateways in India

• Citrus Pay Payment Gateway. Citrus Pay is one of the top payment gateways in India today.
• CCAvenue Payment Gateway.
• PayUBiz India Payment Gateway.
• Direcpay Payment Gateway.
• Zaakpay Payment Gateway.
• Instamojo Payment Gateway.
• Bill Desk.
• Atom Paynetz Payment Gateway.

Do you need a merchant account for eCommerce?

To start taking credit and debit card payments online, you’ll require a merchant account. And not just any old merchant account, either – you’ll need one built for the rigorous demands of ecommerce, from a provider that empowers you to accept payments in a variety of currencies, and with a range of card types.

What is a merchant gateway?

Simply put, a merchant payment gateway is cloud-based credit card processing software. A payment gateway facilitates communication between the different entities in a credit card transaction. This includes the merchant’s bank, the card-issuing bank, the credit card network, and all parties in between.

What is a hosted payment gateway?

A hosted payment gateway is a third-party checkout system that redirects the user to the payment service provider’s (PSP) page. This means that the user will leave your website to complete payment and then be sent back to your website to finish the checkout process.

Do I need a payment gateway if I have a merchant?

On the other hand, if you run a physical store and are just using a credit card terminal to accept credit cards, you can have a merchant account without needing a payment gateway. However, you need one if you want to use a virtual terminal to process keyed-in (or card-not-present) credit card transactions.

How does an ecommerce payment gateway work?

Step 1: Once a customer completes a purchase on an ecommerce website, the ecommerce platform passes it along to the payment gateway via an encrypted connection. Step 2: The payment gateway takes the credit card information and forwards it to the business owner’s merchant account.

What is a merchant account and how does it work?

A merchant account allows you to accept credit cards and provides an account where funds can be deposited and processing charges and fees can be deducted. If you’re just using a credit card terminal to accept credit cards, you can have a merchant account without the need for a payment gateway.

Do you need a merchant account to accept credit cards?

If you’re in eCommerce, you’ll need both a merchant account and a payment gateway to accept credit cards online. On the other hand, if you run a physical store and are just using a credit card terminal to accept credit cards, you can have a merchant account without needing a payment gateway.