A Guide to eCommerce Payment Gateways and Merchant Account Basics

Payment Gateways

Payment Gateways make it possible for people to make sales online. A payment gateway is essentially a doorway for one to sell products. It will allow someone to charge a customer’s credit or debit card when they buy a product. The payment gateway acts as a mediator between the transaction by the buyer and the payment processor.

Common Examples of Payment Gateways:

  • Hosted Payment Gateways: PayPal Standard, 2Checkout, Payza, Setcom
  • Pro or Self-Hosted Payment Gateways: Paypal Pro, Authorize.net ARB
  • API / Non Hosted Payment Gateways: Stripe, Authorize.net CIM
  • Local Bank Integration: Bank Audi, Payseal
  • Direct Payment Gateway: Payflow Pro
  • Platform Based Payment Gateway Solutions: Blue Snap, Gate2shop 

Payment Processors

Payment processors are the financial institutions in the background that process all of the payment transactions and provide the merchant accounts to the sellers. Often times the payment gateway and the payment processor can be the same company.

Merchant Accounts

Merchant accounts are the specific types of bank accounts that the seller opens through the payment processor in order to perform sales through their website. Merchant accounts authorize people to accept credit or debit cards as forms of payment online.