Starting an online business can be a huge challenge, but it can also be really rewarding. One of the most important steps in your journey is figuring out how to accept payments and which merchant accounts and payment gateways best suit your needs. It’s also important to know what you need to do before launching your ecommerce store. This will involve choosing a domain name and designing a website which support credit card transactions.
Here we’ll explain everything you need to know about payment gateways for your ecommerce business so that you can start taking orders immediately!
What is a payment gateway?
A payment gateway, also known as a transaction gateway or acquirer, is the part of an ecommerce site that provides a connection to a merchant account. What this means is that when someone uses their credit card to purchase something from your site, it is the payment gateway that processes the transaction.
What are the different types of merchant accounts?
There are 4 types of merchant accounts:
- Merchant account without a gateway
- Merchant account with a gateway
- Gateway without a merchant account
- Gateway with a merchant account
The type of merchant account you need will depend on what you’re selling and how you process payments. If you sell products, then you’ll need a merchant account that includes a payment gateway. And if your business accepts payments online, then you will need to choose between two types of merchant accounts: those with and those without gateways. Either option can handle accepting credit card transactions and processing financial transactions like refunds or chargebacks. However, the difference is that those with gateways allow for more flexibility and scalability in your ecommerce business as they offer the ability to process international transactions and also partner with third party software providers. Those without gateways can be preferable for smaller businesses that only accept domestic transactions or only want to use one provider for all their needs such as accounting, inventory management, messaging, etc.
How to set up your account
The first thing to do is sign up for a merchant account. You can do this on your own or you can hire someone who specializes in the field to help you. Click Here to get set up a merchant account to get a payment gateway. This will include setting up your bank account, choosing a gateway that’s right for you, and following any other necessary steps (like verifying that you’re not on any sanctions lists).
Considerations for choosing a merchant account
There are two main merchant accounts to choose from. These are the traditional merchant account and the hosted cart service. The traditional merchant account would give you more control, especially if you wanted to do direct transactions. But with a hosted cart service, you don’t have to worry about PCI compliance or fraud protection because it’s all taken care of for you!
As part of your decision process, consider these factors:
-The type of business you’re running -How much volume will be processed through your ecommerce store? -Do you want full control of your company’s data?
Setting up your merchant account is the first step to getting your new e-commerce store up and running. Framework Business Solutions has been helping merchants with payment gateways and e-commerce sites for over 12 years. Click Here to get set up quickly and at the best rates!