08 Jul The Differences Between A Payment Gateway And A Merchant Account
There are many differences between a payment gateway and a merchant account, and by understanding these differences, a business owner can more effectively encourage customers to purchase products, manage all of the steps of each transaction and access the funds from the transactions.
A top notch payment gateway will allow a business to accept many payment methods, such as a credit card, an ACH transfer or a payment from an online payment processor.
Additionally, some payment gateways allow customers to split the cost of a transaction among several payment methods, and various studies have shown that payment gateways that allow customers to do this will usually generate higher conversion rates.
Adding The Details
A business that provides a trusted payment gateway can allow customers to easily change their shipping information, billing information and the quantity of the product that they want to purchase.
Customers can also store their credit card processing information in the website’s database and enter promotional codes to receive large discounts for certain products.
A customer can choose to create an account on the website, and after a customer has placed an order, the customer can view their order’s tracking number, view the status of their order and contact a customer service representative by logging into their account.
Improving Conversion Rates
Many studies have indicated that customers are most likely to leave a website after they have already placed items in an online shopping cart.
As a result, credit processing services providers are now sending emails and text messages to encourage customers who have abandoned their shopping carts to complete their orders.
In the past, merchants had to wait for several days before withdrawing the funds of a transaction, but now, companies that provide merchant accounts allow business owners to withdraw funds instantly.
In addition, a business owner can link a merchant account with one of their credit cards.
Statistics And Analytics
A company that provides merchant accounts will allow a business owner to view detailed statistics and analytics that will show the revenue of the business during a certain time period, the geographical areas from which customers are placing orders and the payment methods that are being used for all transactions.