- A merchant account is a type of bank account that allows
businesses to accept payments by debit or credit cards. An
Internet merchant account is a merchant account that allows
businesses to accept debit or credit card payments over the
- If you're looking to accept credit cards online, you're going to
need an Internet merchant account. Internet merchant accounts
are merchant accounts specifically designed for processing
credit cards online. Typically, the Internet version has more
security controls than your traditional merchant account.
- In addition to an Internet merchant account, you'll also need a
payment gateway service to move the money between your shopping
cart and the banks or credit card companies involved with the
- A merchant account is established under an agreement between an
acceptor (the client) and a merchant acquiring bank for the
settlement of payment card transactions. In some cases a payment
processor, Independent Sales Organization (ISO), or Member
Service Provider (MSP), or a Payment Services Provider (PSP)
like PayPal is also a party to the merchant agreement.
- Whether a merchant enters into a merchant agreement directly
with an acquiring bank or through an aggregator such as PayPal,
the agreement contractually binds the merchant to obey the
operating regulations established by the card associations.
- A payment gateway (ISO, MSP or PSP) is an e-commerce service
that authorizes payments for e-businesses and online retailers.
It is the equivalent of a physical POS (point-of-sale) terminal
located in most retail outlets. A merchant account provider is
typically a separate company from the payment gateway.
- Some merchant account providers have their own payment gateways
but the majority of companies use 3rd party payment gateways.
The gateway usually has 2 components: a) the virtual terminal
that can allow for a merchant to securely login and key in
credit card numbers or b) have the website's shopping-cart
connect to the gateway via an API to allow for real time
processing from the merchant's website.
- The Offshore House Limited has relationships with a number of
merchant banks and payment gateways. We can assist you open a