There are two types of payment gateways available. One requires a merchant account, the other does not.Payment gateway comparison of these two types is differentiated by what services each provides.
Services With Merchant Account
Payment Gateway Services that require a merchant account will show your business name on the credit card statement of your customer. This will result in less disputes that may lead to chargebacks to your merchant account. You are also more likely to find competitive rates with a payment gateway of this type.
However, this type of account includes a long setup time that can take anywhere between three and six weeks. This will mean a long wait before you can begin making sales. You will also need to obtain your own security tools to prevent fraud and will not be able to accept some forms of payment from your customers.
Services Without Merchant Account
A payment gateway that does not require you to obtain a merchant account will allow you to begin sales immediately. The gateway company is responsible for the installation of fraud protection and will take a percentage fee for each sale.
However, you will pay a high commission rate and a fixed transaction rate. The payment gateway services company’s name will also show on your customer’s billing statement rather than your own business name, which could confuse the customer. This may lead to disputes and chargebacks. One way to circumvent this is to include such information on your billing page.
Payment Gateway Integration
Payment gateway integration is an important thing to consider for your business. In reviewing payment gateway providers, you need to consider speed, appearance, currency support, address verification, transaction handling, email support, shopping cart support, recurring billing support, and most importantly, technical support.
These key features will determine whether the payment gateway services provider is going to be a good fit for your company. A provider that offers several useful services will be more supportive for your business overall. Some services should include address verification, real-time processing, SSL, CVV verification (three digit card verification for security), email, fax, live chat for tech support, and the acceptance of a variety of card types.
Comparing payment gateway services providers is straight forward. Many sites providing a side-by-side view of the capabilities and features of each of the payment gateway providers. This will give you a clear view of what you are looking for in a provider.