I’m setting up online payments for the first time and came across terms like “payment gateway” and “merchant account.” I’m a bit confused—what’s the difference between an Authorize.net payment gateway and a merchant account? Do I need both to start accepting payments?
Answer by: abdullah-al-naim
2 months ago
Authorize.net is a payment gateway that facilitates the secure transfer of payment data between the customer, the merchant, and the customer\’s bank. It acts as a middleman between the customer and the merchant\’s bank, encrypting and securely transmitting payment information. In other words, it is a service that authorizes credit card transactions and ensures data security.
On the other hand, a merchant account is a type of bank account that allows a business to accept credit card payments. It is used to receive the funds from the customer\’s bank once the payment is authorized. Banks or other financial institutions offer merchant accounts and charge fees for processing payments and other services.
There are more differences between an Authorize.net payment gateway and a merchant account. You can check our blog page to know more.
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