To study the difference between merchant account and gateway firstly it’s important to understand these terms. Merchant account is basically a medium through which well retail establishment accept credit cards, visa cards, debit cards and other loyalties. One big advantage of a merchant account is that it can be accessed both through offline and online. A merchant account can be operated through special merchant account provider or banks. For offering this service the merchant provider charges a nominal amount of fees that varies accordingly. Names of some of the transaction fees include:

• Chargeback fees
• Authorization fees
• Retrieval fees
• Non-qualified rate
• Batch closure charge
• Monthly minimum fees
• Discount rate

There are many more fees associated with a merchant account. To benefit more out of merchant account its better if you have more sales volume so that you can gain more.

Gateway account on the other hand is a bit different from merchant account as it is a program that is specifically created for online retailers. If you are online retail shop owner and if you are looking forward to persuade customers to buy different things from your website then you are the one who surely need this software program. Once you have a gateway account your clientele will be sure about the status of their card payments which in turn will help your business to grow and prosper. Moreover, gateway uses an encryption technique thus, ensuring its customers full security and safety of their credit card information.  
 

Accepting a few credit card payments on you website can be easily done without using Paypal. There are many merchant service providers and third party payment processors that allow for accepting credit card payments on a website. Most of the credit card processing companies will allow you to accept cards issued by Master, Visa, American Express, Discover and Diners Club International. Charge.com is one such site which has good reviews from many leading merchants. This can be a good option for your website because there are many features that come absolutely free of charge. There is no set-up fee and no application charge for a Charge account. Merchants will also have a host of goodies such as free technical support, free shopping cart software, free Internet check software and free search engine submission.

A merchant can immediately start transaction with a credit card merchant account, SSL for secure transactions, online payment processing system that allows you to immediately accept credit card payments, a web based terminal for easy processing of credit card orders manually, funds are quickly wired into the checking account of your choice and convenient online reporting and management of transactions. All these features make it very easy for a merchant to start selling on the Internet and increase revenues. As a merchant you should be aware that a credit card processing system on your website can help your sales soar from 50% to 400% within a short period of time. Before you select a merchant it is always advisable to check the features of some other providers also.

2Checkout is one of the simplest solutions to merchants to start selling their products on the web. Established in 1999, the site averages a total of 8 million views per month. 2CO provides turnkey e-commerce solutions to business customers across the world. It supports the complex back office functions of an e-commerce transaction. This includes financial reporting, tracking, fraud prevention, affiliate tracking, customer service and sales tracking. Now let us see why 2CO is preferred by so many merchants across the globe. It has a simple and easy to use plug-n- play code which makes it fast to start using it. 2CO has a simple commission fee structure which is attractive for merchants, works with existing shopping carts, supports recurring billing and has robust shipping options.

The costs associated with doing business on 2CO are low, $49 being a one time signup fee that is charged. Merchants get a free shopping cart, free code for the merchant’s web site and free online tech support. There is no fee that is charged for ACH deposits to U.S. or participating Canadian bank accounts and merchants have the option of a wire transfers to non US banks for a low fee. Along with a 30 day money back guarantee there are other features such as no application fee, no monthly fee, no statement fee, no leases and no SSL certificates to buy for the merchant. A small transaction fee of $0.45 is charged per sale making it one of the most attractive payment processors to do business with.

Having a product, a website, and a shopping cart isn’t enough. Learn the various methods available to allow your customers to do that most important thing in ecommerce, pay you.
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Google checkout is another service from the Google stable. It facilitates payment transactions between buyers and sellers on the Internet. The services offered are similar to Paypal and both are reputed brands. So which service should you go for to transact business over the Internet? Paypal is an old brand and there are millions of e-businesses that transact business using their service. It is renowned and has very stable systems. As a company grows numerous problems also follow it. Merchants complain about the poor services that Paypal offers. They complain that Paypal has frozen their funds without any reason. Similarly there are many more complaints that are lodged against Paypal every day. All these factors make me think why not give Google checkout a try. It has robust systems, it is a new service and most important it comes from the Google stable. Being the foremost Internet companies in the world there is no doubt that the service is stable and it is not one of those ‘fly by night’ dot com. Opening an account in Google checkout is simple and all you have to do is punch in a few simple details and give your credit card number. Your account will be up and running in a short time and you can start transacting business. It will definitely be a wise idea to start transacting business on Google checkout because the service levels will be high as with any other Google service. If you are not satisfied with the service you can always go back to the tried and tested services of Paypal.

So your business has expanded to reach the point where you need to find an effective Internet payment solution? The first option to consider is applying for a merchant account. If your business enjoys a solid credit history, pays its bills on time, and avoids controversial dealings, your application should be approved without a hitch. Then you can set up a company Website where you can sell more products and services and let customers pay with a credit card online.
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If you have a business on the web it is important for you to understand the difference between a third party processor and a payment gateway. In simple words a third party processor is a company who processes your internet card transactions for you and helps you receive the payment. The payment processors systems are integrated with the payment gateways of different institutions and you are provided a merchant account to transact business safely over the Internet.

A payment gateway on the other hand is a mechanism which allows you to actually process a payment that you have received from a customer. It is independent of the third part processor and offered by banks and financial institutions. If you are planning an online business you need to decide on whether you want to go for a separate merchant account or you want to go for a packaged third party processor. If you want to go for a merchant account, then you will have the option of choosing a payment gateway of your choice. It all depends upon your requirement on which option as a business suits you. Irrespective of whether you opt for a separate merchant account or a third party processor you will have to accept Mater and Visa cards. If you want to have a broader acceptability then American Express and Discover cards can also be accepted by your site.

Third party processors and a payment gateway are two independent systems, but offer complementary services.

A retail business has special needs to handle their all the transaction when it comes to accepting credit cards it is very necessary to chose the best services of Merchant credit card services. There are number of service providers available in the market, before choosing out of them one should always take precautions.
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