Merchant Accounts

Introduction

Merchant Accounts, Gateways, and PayPal are different payment methods or components of payment methods used on the internet.  They are an integral part of eCommerce [learn more].

Information

Merchant Accounts

A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of electronic payment. This is also widely known as payment processing or credit card processing.  [learn more]

When you sign up for a merchant account through eMerchantClub, you get an Innovative Merchant Services (IMS) account.  IMS is a separate company [their website] who provides credit card acceptance services.  This is an account type that you must apply for.

Using this account, you can charge a credit card in person, on the telephone, or on your website.  If you wish your website to process the payment automatically, you must also have a gateway account.

Gateway Accounts

Gateway is a technical term for the software interface between a web-based shopping cart and a merchant account.  A payment gateway facilitates the transfer of information between a website and a processing bank, quickly and securely.  [learn more]

A gateway account is a separate purchase from a merchant account.  When used in conjunction with a merchant account, the gateway allows your website to process a payment real-time and automatically.

If you have a Gift Card Redemption website, you must have a gateway in addition to a merchant account for the website to be able to accept credit card payments.  An eCommerce website is capable of accepting a credit card submission without a gateway, but you must process the credit card transaction manually.

PayPal

PayPal is an Internet business which allows the transfer of money between e-mail users and merchants, avoiding traditional paper methods such as checks and money orders.  [learn more]  [Learn how to use PayPal with your eCommerce website]

Many people assume that adding PayPal to your Web site means that your Web site can accept credit card transactions.  This is close to the truth, but not exactly accurate.  PayPal allows your customer to initiate a transfer of funds to you, but your Web site has no part in this transaction, except to tell PayPal how much money to expect your customer to send you.