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KingHippo
09-29-2008, 04:54 AM
I'm a bit confused when it comes to processing online orders. I know that for sure, I will be using Visual Studio 2008 / .NET Framework 2.0 at a minimum for my company website. I am now trying to figure out which merchant account provider to sign up with. I am also a bit confused as to what the difference between merchant account and payment gateway is.

I thought that when I signed up for a business checking account, that I would be able to use a company like Paymentech's API with .NET to accept credit card payments and send money into that account. But now it sounds like a merchant account is actually yet another business bank account. Help!!! :)

KristineS
09-29-2008, 03:46 PM
I know we use PayPal Website Payments Pro for our online transactions. We also, so far as I know, have a Merchant Gateway through our bank, but our accountants set that up, so I don't know much about it.

These sites might be of some assistance in helping you understand the process:

Online Payments - a guide for e-commerce software and online store users - shopfitter (http://www.shopfitter.com/onlinepayments.htm)
http://www.entrepreneurs-journey.com/ (http://www.entrepreneurs-journey.com/227/audio-taking-payments-online-part-2/)

vangogh
09-29-2008, 08:59 PM
For some quick reading here are Wikipedia entries for:

Merchant Account (http://en.wikipedia.org/wiki/Merchant_account)
Payment Gateway (http://en.wikipedia.org/wiki/Payment_gateway)

What you're basically going to be doing is signing up with a merchant account. The merchant will accept credit card transaction on your behalf for a fee on each transaction. They'll likely have some way for you to connect with them online. They'll provide some or all of the code you'll need. A lot of shopping carts have already done the programming though so all you end up needing to do is add authorization to the software and you're set.

When you're looking into merchants you can ask them about how to connect with them online. They should have code and instructions for you to use.

doris78
10-22-2009, 04:45 AM
Merchant account is a bank authorized account that allows payments from consumers' credit or debit cards for goods or any services offered in any business. On the other hand Payment gateway is software that acts as a terminal for credit or debit card verification and authorization.

dynocat
10-22-2009, 10:36 AM
Merchant account is a bank authorized account that allows payments from consumers' credit or debit cards for goods or any services offered in any business. On the other hand Payment gateway is software that acts as a terminal for credit or debit card verification and authorization.

Interesting you should post this.

I've been with First Data (formerly Linkpoint) since 1988 when I set up my first website. They, like most, if not all gateways, offer a virtual terminal so you can enter orders and credit charges online as well as automatically through your website. While First Data may not be the least expensive gateway out there, I have been very happy with them. No complaints. Hopefully that continues.

My merchant account is through Cardservice International. They handle the transactions, merchant fee collection and deposits to my checking account.