Digitalization and the internet boom have transformed the way people do business. Online selling is becoming increasingly popular. According to Statista, 2 billion people purchased goods and services online in 2020.
Whether you want to start your own make-up brand or sell your freelance writing services, one of the first questions you ask is how you can start taking payments. It gets trickier when your customers are spread across a wider area like the whole country or even the world. And in this day age, nobody likes to being paid later. Everyone wants their money in their bank account immediately.
The distance between individuals and urgency to receive payments is solved by online payment solutions. However, your website must already have a shopping cart software or an integrated online shop.
Firstly, you would need to get a merchant account. A merchant account is an online bank account where the funds are temporarily held after the customer makes the payment. The funds are credited to the merchant’s business bank account once the customer’s bank approves the payment.
An important thing to note is that your merchant account is not always provided by your business bank account provider.
The next thing you need is an online payment gateway. A payment gateway for website is a software that links your website to a payment processing network. Gateway processing is an essential part of this process. The customer’s data is encrypted for security and sent to the online payment processor. The payment processor gets in touch with the cardholder’s issuing bank to see if they have enough funds or credit to process the payment. Once the cardholder’s bank approves the transaction, the payment processor sends the information back to the merchant and instructs the customer’s bank to settle the amount to the merchant business bank account.
Some of the best online payment processors include Visa and Mastercard. American Express is another secure payment processor. The information on the debit or credit card comes from banks like Lloyds Bank or Satandar Bank
However, your merchant account and payment gateway need not necessarily have to come from a bank or a card payment processor.
CutPay Can Help You Get A Merchant Account & A Payment Gateway!
The process of obtaining a merchant account and a credit card payment gateway is not complicated, but it can be difficult to manage it seamlessly. CutPay is going to make this process much easier for you.
We at CutPay understand the needs and requirements of online businesses. We hope these tips from us help you in running your business.
If you want to apply for a merchant account and a payment gateway for your website, you have come to the right place.
Just fill out the form below and give us some details about your business and one of our representatives will reach out to you shortly!