As someone who is planning to start a business, there’s a good chance you are trying to choose between internet merchant accounts and credit card payment gateways. What’s the difference between the two? Which will work better?
A breakdown of what an internet merchant account is and how it works can help a business decide if it is something they need, and the same goes for payment gateways. It’s critical to know what the difference between the two is and how they work.
What Is An Internet Merchant Account?
An Internet Merchant Account is a type of bank account that can accept deposits directly from debit card and credit card payments. From there, the business can transfer it into an ordinary business bank account. Simply put, Internet Merchant Accounts are just for holding the money you will be depositing in said business bank account.
What Is A Credit Card (CC) Payment Gateway?
A cc payment gateway provides the connection between a website that accepts credit cards and the traditional banking network. When a cardholder makes a payment, the cc payment gateway transmits that information to the cardholder’s issuing bank to see if the sale can be approved, and, if so, the payment gateway charges the account. The gateway then transmits the result of the transaction to the business and the cardholder.
An internet merchant account and a credit card payment gateway work together hand-in-hand. The payment gateway performs the transaction, and the funds are deposited into the business’s merchant account. Business owners can visit Charge.com to compare prices, or call 1-888-923-2743 now to learn more about merchant accounts and payment gateways, or to start accepting credit cards from their customers today.