What is the difference between a payment gateway and a merchant account?

A merchant account is a financial institution or bank account used by a merchant specifically for the purpose of collecting proceeds from a consumer bank account or credit card payment transactions. A payment gateway is the infrastructure that enables you to accept credit cards and electronic check payments from websites, terminals or mobile devices. Payment gateways also provide merchants with transaction management, reporting and billing services. You can use a Card Present (CP) merchant account to receive payments at a physical location where customers physically present a form of payment to you at the time of the transaction. By contrast, a Card Not Present (CNP) merchant account can be used to receive payments electronically (i.e. online payments) or in situations where consumers aren’t physically present at the time of the transaction.

Is my business bank account the same as a merchant account?

No. A merchant account is a type of bank account that allows businesses to accept payments by payment cards, which are typically debit or credit cards. It’s similar to a credit line for your business to accept payments or issue refunds. A merchant account is unique to you and your business. When you apply, the underwriter will look at your industry, your processing history (if any), your personal credit, your business’s creditworthiness and other factors. Once approved, your business can start accepting payments.

How long does the application process take and what is required?

Upon proper completion of the application, your Authorize.net Payment Gateway account will be approved. However, in order to accept credit cards, you must have a merchant account, and approval for that account can be immediate or take from one to five business days or more depending on several factors, including industry, credit history and responsiveness. If you have an existing merchant account, you can update your gateway with the parameters provided from your merchant services provider and be ready to transact within minutes. If you are applying for our ‘all-in-one’ solution, where we help to provide you with the merchant account, the approval process could be as quick as one hour if the application is ‘auto-approved’.

What forms of payment can you help me accept?

We offer a variety of payment options ranging from credit cards and digital electronic checks (eChecks) to PayPal.

How long does it take for the funds to be deposited into my bank account?

Your Merchant Service Provider (MSP) facilitates transferring funds to your bank account. Funding time can vary depending on your MSP. The industry average funding period is between three to five business days.

What is a chargeback?

A chargeback is a charge reversal initiated by the cardholder’s bank on behalf of the cardholder.

Business payment services | Visa Acceptance Solutions

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Powerful payment solutions

Find out how our products, services and platform can improve the customer experience.

Solutions that deliver

Leverage our merchant services to simplify payment processing, secure every transaction and access expert support whenever you need it.

Simplicity

Streamlined payment processing eliminates the complexities of digital transactions.

Security

Advanced encryption and fraud detection technologies safeguard every transaction.

Service

Personalized assistance and expert guidance ensure always-on support.

Setting you up for success

Realize your business objectives with an easy-to-use platform of solutions.

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Understand how card payments work

Build your eCommerce business and boost your revenue with these transaction tools.

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Attract and retain customers

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Make customers feel valued and increase engagement by offering personalized payment experiences.

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Defend your business against fraud

Understand risk factors and develop a fraud prevention strategy to help reduce potential losses.

DoggieLawn: Managing subscription payments with Authorize.net

Find out how Visa Acceptance Solutions helped founder Natalie Youn create convenient, seamless customer experiences for her eCommerce pet business.

Read DoggieLawn’s case study

Supporting small businesses by the numbers

We empower small businesses to grow by enabling them to provide flexible, secure and simple ways to pay.

445 K

small business merchants.¹

2.5 K

partners and counting.²

$ 205 B

in annual small business payments.²

FAQs

Your questions answered

: A merchant account is a financial institution or bank account used by a merchant specifically for the purpose of collecting proceeds from a consumer bank account or credit card payment transactions.

A payment gateway is the infrastructure that enables you to accept credit cards and electronic check payments from websites, terminals or mobile devices. Payment gateways also provide merchants with transaction management, reporting and billing services.

You can use a Card Present (CP) merchant account to receive payments at a physical location where customers physically present a form of payment to you at the time of the transaction.

By contrast, a Card Not Present (CNP) merchant account can be used to receive payments electronically (i.e. online payments) or in situations where consumers aren’t physically present at the time of the transaction.
: No. A merchant account is a type of bank account that allows businesses to accept payments by payment cards, which are typically debit or credit cards. It’s similar to a credit line for your business to accept payments or issue refunds.

A merchant account is unique to you and your business. When you apply, the underwriter will look at your industry, your processing history (if any), your personal credit, your business’s creditworthiness and other factors. Once approved, your business can start accepting payments.
: Upon proper completion of the application, your Authorize.net Payment Gateway account will be approved. However, in order to accept credit cards, you must have a merchant account, and approval for that account can be immediate or take from one to five business days or more depending on several factors, including industry, credit history and responsiveness.

If you have an existing merchant account, you can update your gateway with the parameters provided from your merchant services provider and be ready to transact within minutes.

If you are applying for our ‘all-in-one’ solution, where we help to provide you with the merchant account, the approval process could be as quick as one hour if the application is ‘auto-approved’.
: We offer a variety of payment options ranging from credit cards and digital electronic checks (eChecks) to PayPal.
: Your Merchant Service Provider (MSP) facilitates transferring funds to your bank account. Funding time can vary depending on your MSP. The industry average funding period is between three to five business days.
: A chargeback is a charge reversal initiated by the cardholder’s bank on behalf of the cardholder.

“We love the modern, secure payment services and methods like Visa that make things easier for us and our customers. They ultimately let us focus on what we do well.”

— Natalie Youn, CEO and Founder, DoggieLawn

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Authorize.net, About us, Nov 2024, https://www.authorize.net/about-us.html
Authorize.net. (2024).

Optimize your merchant services for frictionless payments