Difference between a Internet Merchant account and Payment Processing Company

3 replies
Hi there,

Just following on from my last question, can someone please explain the difference to me between an Internet Merchant Account and a Payment Processing Company.

Thanks

#account #company #difference #internet #merchant #payment #processing
  • Profile picture of the author grumpyjacksa
    as i understand it, a merchant account is an account at your bank allowing you to receive funds from sales on the web.

    a payment processor is a company who handles payments for you - like paypal, clickbank, 2CO, etc
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  • Profile picture of the author Scott Burton
    Originally Posted by Gwuido65 View Post

    Hi there,

    Just following on from my last question, can someone please explain the difference to me between an Internet Merchant Account and a Payment Processing Company.

    Thanks

    A Merchant Account is an account in your name or your company's name which is able to accept credit card payments. This is ONLY the account, and often does not provide any method of charging the credit card except by paper receipts. You would need a terminal or virtual terminal and/or payment gateway to process transactions in an automated electronic fashion.

    A Payment Processing Company may include a merchant account in your name and provide your processing terminal/gateway/etc., or may process your transactions under their name (such as Paypal does), and then relays your funds to your account with them, or to your bank account depending how the processing agreements are spelled out.

    Usually a Payment Processing Company charges you more per transaction and/or per month, however, alleviates much of the technical issues you might otherwise face with your own merchant account and payment gateway.

    I hope this helps.
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  • Profile picture of the author Gwuido65
    Much appreciated
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