Merchant Accounts Payment gateway

By: Jodimello


There was the time when all the transactions were done through cash payments & businesses were burdened with huge collections of accounts books to track the transactions. With the emergence of credit & debit cards, payment transactions are made easy to process & it saves time too, as all the transactions get updated on the books (servers) automatically. This has given a great opportunity for new industries to grow & excel rapidly in recent years. Merchant account providers with the support of e-commerce interface have emerged as the most significant business services in recent times. The process of accepting the payment through payment cards, typically debit or credit cards with a specific bank account is essential known as Merchant accounts.

Merchant accounts are established with the agreement between the receiver & a merchant acquiring bank for the realization of the payment card transactions. There are instances where a merchant on line is offered merchant solutions by Merchant account providers or independent sales organizations (ISO) with merchant agreement contracts compliant with regulatory guidelines defined by card associations. Merchant solutions offer several methods of processing credit cards, such as

Credit card terminal – The payment is processed by swiping the cards in electronic equipment & by keying in the card information during the time of transactions. Most of the outlets in today’s market have the credit card terminal equipments to process the payment. The funds get directly transferred to the merchant account or the transaction gets verified & then the data is submitted to the merchant account.

Automated Response Unit (ARU) - This method of payment has grown with rapid rate, where most of the telecommunication service providers specifically are relying on this mode of payment. This transaction is essentially done over the phone where the user keying all the vital information of card & payment gets process instantly.

Payment gateway – It’s the e-commerce services which have emerged as the most significant services in the recent years. This permits payment for e-businesses & online retailer, as most of the businesses in today’s world prefer to have more transaction through e-commerce interface. The transaction done through payment gateway is as good as physical POS (point-of-sale) that gets processed in most of retail outlets. This is completely separate from merchant account providers, however some merchant account providers have their own payment gateways. Most of the businesses use 3rd party payment gateways.

Payment gateway essentially have2 components which make the transaction more secure & payments to get processed quickly thus provide the merchant solutions more value than a physical transaction. This works on virtual terminal which allows the merchant to login & key in the credit card information in a secured environment & it also gets connects the website’s shopping cart to the gateway via an API to allow for real time processing from the merchant's website. The credit card merchant account providers usually prefer payment gateways for their transactions.

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There are instances where a merchant on line is offered merchant solutions by Merchant account providers or independent sales organizations (ISO) with merchant agreement contracts compliant with regulatory guidelines defined by card associations. The funds get directly transferred to the merchant account or the transaction gets verified & then the data is submitted to the merchant account.

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