Businesses can use payment gateways to accept transfers from debit cards, credit cards, checking accounts and alternative online payment processors. Some merchant services providers offer a myriad of extra services that can greatly boost a company’s profits, such as the ability to process mobile payments, accepting gift cards and online marketing services.
The Process
Patrons can place an order on a merchant’s website, but before doing so, most payment gateways require the customer to put the item that they want to purchase in a virtual cart.
People instinctively want to fill a cart, so they are likely to add extra items or services. Next, the customer can customize each aspect of their order, such as choosing the duration of a service or selecting the size of a particular product.
When the patron enters their billing and shipping information, they will have the choice to save it on the company’s website, and numerous studies have shown that customers who store their information on a site are 25 percent more likely to return and to make another purchase than those who do not save their information.
Mobile Devices
A payment gateway will allow a business to accept orders from people who are using mobile devices of all types, and when a customer makes a purchase by using their smartphone, the business owner can see the geographical area from which the order was placed and the brand of the phone.
Payment Terminals
If a company frequently accepts payments at job sites, fundraisers or conferences, the merchant services provider can give the business several payment terminals that can be used at any location.
Connected by a satellite, these lightweight terminals can instantly indicate whether or not a credit card or a debit card has been approved, and they can print detailed receipts and keep a comprehensive record of each transaction that was completed during a certain period of time.
The Flow Of Money
Once an order has been placed, the patron’s funds will immediately be transferred to the company’s merchant account; however, the cash from each transaction will be pending for two or three business days before it is accessible.
The Merchant Account
By using a merchant account, a business owner can easily track their orders by typing in the order number, the name of the customer, the item that was purchased or the date on which the order was placed.
In addition, a business owner can link a credit card with their merchant account in order to withdraw funds for free at all ATMs that in the same network as the merchant services provider.