The primary reason why you set up a virtual storefront is to make a sale. When visitors see your products, you want them to make a purchase. Services offered by payment gateways are very useful when customers need to pay you for their purchases.
A gateway serves as a channel that can bring a thing from one place to another. When doing eCommerce, a gateway plays an integral role in making verifications and allowing credit card transactions to come through. A payment gateway is an essential component of any online business.
For businesses to be able to accept credit card payments, they need to have a merchant account. Business owners can open a merchant account in the bank where they do their banking transactions. This type of account is where revenue derived from credit card transactions will be transferred after verification by the gateway.
A number of online companies offer payment gateway services for businesses that accept credit card payments. Business owners can choose the payment gateway provider of their choice. However, there are companies that offer a combination of services such as those that offer software packages that include a merchant account and a gateway service option as well.
Setting up the Necessary Accounts
The first thing that you need to do to get started is to open a merchant bank account and payment gateway account. When opening a merchant bank account, make sure that you choose a bank that will accept funds from your payment gateway account. This type of account lets you set up payments between your eCommerce site and your merchant bank account.
Online businesses that accept credit card payments should also have an Internet merchant account. All funds received from credit card payments are transferred from the payment gateway to this account. However, funds only stay in this account temporarily as they will be transferred to another account that a merchant designates beforehand. Transfers are done regularly and automatically.