What is a payment gateway? A payment gateway is a payment service like Authorize.Net® that authorizes credit card payments for online businesses, e-businesses, retail merchants, mobile merchants, and traditional brick and mortar stores. A payment gateway is responsible for facilitating and securing the authorization of payment data between the payment application (i.e. website, virtual terminal, pos system) and the merchant account or acquiring bank. To consolidate payment services, a merchant will typically setup a merchant service account and payment gateway in one process through the same company. Payment Gateway Services is a division of Point of Sale USA, an authorized reseller of Authorize.Net.
Virtual Merchant Services
A virtual merchant account is required to accept credit card, debit cards, and other types of e-payments. Authorize.Net in the USA and Canada works as a merchant account provider and as a payment gateway, giving you the best of both words for payment integration based on your business needs. For instance, if you already have a merchant account with another provider, but need to accept payments through your website, you may only need to sign up for a payment gateway. However, if you need a new virtual merchant account, it’s better to get the merchant account and payment gateway through the same provider so you’re not paying additional transaction and gateway fees.