Very often, online merchants find eCommerce challenging. To avoid facing problems when establishing an online business, take time to understand the basics of eCommerce. Below, you can find some of the most important aspects associated with online commerce – payment processors, payment gateways, and merchant accounts.
A payment processor or acquirer is a financial institution providing the payment processing services used by online merchants. It may partner with other companies dealing with merchants or consumers. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their services directly to an online merchant.
There are payment processor that offer direct merchant services, but the majority of them provide payment processing. As a rule, payment processors prefer not to market their services. They usually work in the background and process payments for Independent Sales Organizations or ISOs and Member Service Providers or MSPs that have entered into partnership with them.
A payment gateway allows for charging customers’ credit and debit card with the purchase being made online. Thanks to the authorization provided by a payment gateway, you can take card payments right from your website. So it plays an intermediary role between the transactions being processed on your website and the payment processor. Due to security reasons, transaction information cannot be transmitted directly from your website to a payment processor.
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. Merchant accounts are provided by many companies. You can get a merchant account also from some payment processors and payment gateways. Besides, you can open one with some large banks.
If you’re interested in opening a secure and reliable merchant account, consider turning to EMB. eMerchantbroker.com is voted the #1 high risk payment processor in the US and has an A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies of 2016 and is rated “A” by Card Payment Options.
ISOs and MSPs can also provide merchant accounts as they make agreements with payment processors to offer such services. What is more, you can get a merchant account from Independent Contractors or Agents of ISOs as well.
Anyway, to obtain a merchant account, you should choose the right merchant account provider that offers the best possible rates and fees for your online business.