Payment Gateway – Authorizing Payment and Acting as Defensive Coverby Emii Watson Credit Card Processing and Merchant Accounts
If anyone is really serious about launching a website
business and offering products to the public, they’ll soon come to one
realization. Having a method to accept credit card payments on-line is crucial
to the future success of any business. However, there are other ways to accept
payments without having to go through requirements and scrutiny associated with
setting up a merchant account through a local bank. While setting up a merchant
account has its advantages, today’s web technology enables third-party entities
to facilitate the process of accepting on-line credit card and debit card
payments. Also known as “payment gateways,” these third parties accept the
responsibility of accepting payments for website owners in exchange for a
varying fee and percentage of the sales done through the website.
There are several advantages as well for the merchant web owner. Among these are:
- Lower set up fees
- They are convenient for new startup merchants in that merchants can test the uncharted waters as to a products sell-ability.
- Payment gateways are as close to a “plug n’ play” platform as a merchant owner can get. Typically, the website owner gets a payment from the payment gateways once a month. The accounting is already done for him/her in many instances and all the web owners have to take care of is the running of the business itself.
- Another benefit to third party merchants is if they have a recognized web presence, buyers trust their perceived reliability more than a typical privately runs merchant account.
However, let it be said that merchant accounts do have certain advantages that third-party or payment gateways do not have. Typically, transaction fees or what a merchant pays for each transaction done on his site, are somewhat lower than what merchants are usually charged by payment gateways. Another aspect of having a merchant account that makes it more attractive is the on-line presence and reputation that the merchant builds; not only on-line but at their financial institution of choice. There are several things to Check out When Choosing a Credit Card Processor and companies accepting credit cards give more options to the clients.
Be certain to read the tiny print in any agreement as nowhere is the phrase, “the devil is in the details” more true than in credit card processing. Check out and test their support services especially testing for downtime. Your waiting customers won’t wait too long if they have their time wasted. Get several processors and research their services, rates, etc. Choice must be done wisely. However, whether one chooses a privately run merchant account service method or a payment gateway method, there is no doubt that having the facility of processing credit cards and/debit cards increases the likelihood of growing the bottom line for any Internet-based business. Thus payment gateway acts as a barrier that prevents fraudulent activities.
This writer has considerable knowledge about electronic payment methods and new business trends. He has written many informative articles on topics such as importance of merchant account processing. His articles inform about new encryption technologies that protect the sensible information.
Created on Dec 31st 1969 18:00. Viewed 0 times.