subject: Why You Need A Merchant Account And A Payment Gateway For Your Online Business [print this page] A merchant account allows you to accept credit card payments online while the payment gateway on the other hand allows you to instantly accept credit cards without building a positive card history, so both is necessary for a secure and hassle-free online business.
A merchant account is now an essential tool for online businesses nowadays due to its several advantages for both customers and merchants. The same is also true for payment gateways, both of them are vital in helping your business to grow and build a reputation, especially if you have just started selling. Here are the benefits of both.
The use of a merchant account offers you several advantages. With merchant accounts, various credit cards can now be accept for payments. You can now accept MasterCard, Visa, Discover Card and others. Because of this, your merchant account will help increase your profits due to the variety of ways to pay. With the rise of modern technology, businesses can now be conducted online, customers find it very convenient if you are using merchant accounts with the ease hey provide in shopping and paying, and through word-of-mouth you can increase your sales owing to customer satisfaction.
Also, the use of a merchant account can give the customers a feeling of security when conducting transactions, your shop can earn more points the higher the customer confidence is. Another advantage is that you can effectively monitor the progress of you business and keep track of all the previous transactions made. Once you have a merchant account, you would receive a monthly statement of all your transactions and the amount received, also easily determining how much tax you will have to pay.
The payment gateway provides the following benefits to those who avail it. The payment gateway is good for merchant who are just new in business, it allows you to immediately start accepting payments through credit cards and skip the process of establishing a positive credit reputation in a merchant account. If your business permits you a larger than average transactions through credit cards, the payment gateway can minimize the time it takes to process all those deals. With more time saved, the more money can be earned and set aside for other expenditures. With a payment gateway, you can strictly monitor and protect yourself, your customers and your business from fraud. It would immediately contact you once any of your customers reported of a lost or stolen credit card. This can significantly avoid any charge-backs.
So when using a merchant account to accept credit cards, it would be easier to earn the customer's confidence if you have a payment gateway.
By using both the merchant account and the payment gateway, you can not only maximize your earnings but also give a sense of satisfaction for you and for your customers. Use it wisely and watch your business grow.
