Whether you own a business or planning to start one, you will have customers who will pay through credit and debit cards. How does it matter? It does because to accept these payments, your business needs its very own merchant account. Though you may have heard about it a million times but when it comes to know what a merchant account is exactly and what are its aspects, your knowledge may not be complete. Also, you may not be knowing why businesses need merchant services and how phenomenal their future looks in the vast business world. Agree? This post can help you get all the information in the easiest and best way.
Merchant Account- What Is It?
This terms signals towards a sort of bank account that makes a business able to accept card payments as well as various other forms of electronic payments. To set this account, a payment processor is required as it handles payment processing when payment is done from the end of customers for the products and services they purchase.
An agreement is the first step towards a merchant account. This agreement happens between the merchant, the acquiring bank, and parties that are involved in processing the payments. One thing that’s a must to know for you is that every merchant account is designed in its own way. Yes, as every merchant account depends on the type of business, type of payment processing needed, size of business and more. Similarly, merchant services for big enterprises differ from the merchant services for small businesses.
Payment Gateway & Integrated Payment Solution
Payment gateway links the merchant to the payment processing platform of the acquirer. It is used when establishing a connection to the processor gets impossible. Available as all-in-one package, a payment gateway discards the need of implementing servers, software, security protocols and hardware.
Talking about the integrated payment solution, it allows direct connectivity with the payment processor. In its own way, it keeps away the need for a credit card payment gateway since transactions are directed from POS to the payment processor. Also, it comes with its own perks and also offers customizable features. Owing to these reasons, it costs more upfront.
Before starting with the merchant account, first thing to consider is the cost structure and time. Other important factors include level of complexity that has to be put into the payments. Once everything is well-thought, the right solution isn’t far.