If you are about to start your own online store then obviously you would have thought online business as a fast growing and profitable area of business world, according to your potential in Ecommerce store development. And when we talk about the profitability or revenue, particularly in this field, then two factors are the most important aspects of Ecommerce business: The merchant account and the payment gateway. These two aspects of your online store would allow you to get payment in the form of credit cards and that too directly to your Ecommerce website. The merchant account and payment gateway make it very easy to collect the payment from clients otherwise the payment process is very troublesome in online business. If you are going to run an online business then you should be very clear and prepared to tackle this situation. There are number of options for payment gateway and merchant account.
Table of Contents
What is Payment Gateway?
A Payment gateway is an Ecommerce application that is basically used for the seamless performance of payment in Ecommerce business. It is tantamount to “point of sale” system like credit card machine. When online shoppers come to an online store and purchase any item, then they are able to pay in lieu of the item they have purchased, and that too at the point of sale. There is a “Pay Now” option on Ecommerce website and the moment it is clicked, the payment information is passed through the secure server to gateway which acts as a link between the customer’s bank and online shop owner bank. All the account details of the transaction sent from the payment system to the bank account
What is Merchant account?
A merchant account is a kind of bank account that enables online business owner to accept payments by credit cards or debit card. It is considered as contract among merchant bank, retailer and payment processor for the proper management of credit/debit card arrangement. The merchant bank sent request to customer bank for the completion of payment transaction. Then, customer bank either authorize or reject the payment request and the details sent through payment gateway to Ecommerce website of online shop owner.
There is a mixed solution also for performing the payment transaction and that is the combination of payment gateway and merchant account. This method has an advantage over other two ways in terms of time saving. With this method, it takes few seconds to perform the payment transaction. But the cost of this mixed solution is slightly higher than the other applications.
What are you looking for?
Now it depends on your business that what kind of payment solution you have to would have to opt for your online shop. In any case among all the payment solutions, you must have to go through a research in order to select the best suited Ecommerce solution for payment. Whatever solution you would select for payment, there should be some common factors those must be considered while choosing Ecommerce payment solution.
• It should be compatible with your shopping cart
• Encoding capabilities
• Security features must be there
• Hidden fees and payments
• There should be reporting features in that.
Payment system is a very important part of any business and when it comes to an online business, it becomes a complicated process. To remove this complication, Ecommerce web design companies are providing such Ecommerce solutions, targeted on the easy work process of Ecommerce business.