A simple analogy on how merchant gateway providers work

1. A simple analogy on how merchant gateway providers work. If you want to accept credit cards on your website or a mobile device, you might be wondering if you need a merchant account to process these payments, or if you can get by with only a payment gateway. The answer is YES; you do need a merchant account. In fact, you can't have one without the other. That's why you bet is to connect with merchant gateway providers. Such service providers can promptly give you access to both a merchant account as well as a payment gateway. So let's briefly discuss here why you'll need both a merchant account and a payment gateway. Moreover, if you are way ahead with your research, iPayDNA - The Leading Merchant Account and Payment Gateway Provider is at your disposal. You can find the link below. What Is A Payment Gateway - An Analogy? The easiest way to explain what exactly a payment gateway is, it's like a car that gets your payment from your customer on the internet to your merchant account provider for processing. Having a merchant account itself is like having the license that enables you to drive the car. If you'd like to take the analogy one step further, the garage is like your business bank account. You need all three to accept credit card payments online, but you can't have a car (payment gateway) without being able to store it in a garage (bank account). Also, you can't operate the car (payment gateway) without a license (merchant account). You can have a license (merchant account) without a car (payment gateway), although you can't

2. operate a car without a license. You still need a garage (bank account) to store all your stuff, irrespective of whether you're processing online or via a terminal. No doubt, it might be a silly analogy, but it helps make sense of how everything works together. The payment gateway takes your customers' payment information and carries it on to your processor. It then carries the approved or denied response from your processor back to you. The processor is the entity communicating with the credit-issuing banks to get that response. Step-by-step overview of the online processing experience 1. The customer enters the payment information online and clicks on the "submit" button. 2. Your company's web server or host securely receives this payment information. 3. Through the merchant gateway providers, the payment information is transmitted to your processor. 4. The processor then communicates with one of the major card networks (Visa, MasterCard, American Express, etc.) to discover whether a customer's payment is approved or declined. 5. The network issues the approved/denied response, communicating that response back to the processor. 6. Through the payment gateway, the processor forwards the response back to you, the merchant. Depending on the response (approved or not approved), your customer either gets a confirmation of payment page or a "payment not accepted" message. Note:The whole process, which might sound complex, takes only a few seconds. For Receiving Payments Through Smartphones

3. If you're thinking about accepting payments from your Smartphone using software provided by your processor or a third party, the steps are almost the same. The only difference is in the first step, where your customer isn't entering information into a website. Instead, he/she will find a separate payment page on the mobile application where he/she can make use of the touch keypad and enter their credentials. The rest of the steps are similar. To Summarize, If you are willing to receive payments online for your webshop or online services, your best bet is to connect with merchant gateway providers. While a bit of research can help you find many companies, consider this article as a part of your research. The result - you found iPayDNA. It is one of the best payment gateway and merchant account provider that can help you flourish in your online business. So fret no more and visit ipaydna today. For further queries, you can drop us a mail at management@ipaydna.biz.