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Vietnam payment market is a potential and full of opportunities for online payment providers

Mr. Quang Viet Tran (Director of VTC Pay ewallet and payment gateway in Vietnam) 

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VTC Mastercard has known as a prepaid international debit card issued co-branded between VTC Pay and TP Bank.  

With VTC Mastercard, customers can pay for goods and services on e-commerce websites inside and outside the country, accept Mastercard payment, pay for advertising Facebook, Google, ...buy the application market. Appstore, Google Play, Itunes, ..

In addition, the customer can fully enjoy promotions, attractive gifts for Mastercard cardholders.

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VTC Pay – Payment gateway has provided a stable user platform, and perfect payment infrastructure with a wide connection to 33 local banks.

VTC Pay owns  over 3M activated e-wallets, 10M processed transactions and over $5 million monthly cash flow. Additionally, VTC Pay has achieved many awards in Vietnam. Everything happens for reasons. And all success that VTC Pay has got comes from what it brings to merchants.

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SELL EVERYTHING TO EVERYBODY - HOW CAN DO IT?

Negotiating is one of the most important life skills you could ever master, whether you’re requesting a raise, asking for a date, or trying to get your kids to finish their vegetables.

However, this skill is particularly useful when trying to “sell” products and services. Salesmanship can literally make or break your business — no matter what business you’re in.

Very few of us are born with this ability, but like any other skill, you can learn to sell anything to anybody.

Below are some tried and tested rules for going from a “No” to a “Yes.”

1. Focus on Benefits over Features

Many novice salespeople focus on the features of their products or services — i.e. the bells and whistles that make their offerings unique.

This is a mistake.

- Customers don't buy computer processors. They buy the speed that the processor provides.

- They don’t want space-age mattresses. They want a good night's sleep.

Instead of marketing features, focus on the benefits to the user.

At VTC Pay payment gateway, for example, we provide tokenization, PCI-DSS and EV-SSL security. Though what we really offer is peace of mind at a time when credit card fraud is on the rise (i.e. benefits).

2. Know Your Market

In order to define the benefits of your products and services, you have to understand what makes your audience tick. Only then can you determine what's in it for them. Plus, you can express that benefit in a language they understand.

Using the processor example again, you may be able to sell a technophile on speed. Yet a technophobe may be more interested if you re-word that same benefit as "less waiting" or "zero lag times."

You usually only have one shot to convey your message. It pays to do your homework on each customer segment you want to target.

3. Find Common Ground

Resistance is natural — no one likes to be sold on anything, but hesitation isn't necessarily a bad thing. Sometimes, you have to find out what hurdles are preventing you from getting the "yes" that you desire.

Selling is not a monologue — it is a dialogue, and during that discussion, you should be listening more often than talking. Ask questions to discover potential problems or hidden biases:

If price is holding somebody back, consider removing some features (while maintaining the same benefits).

If uncertainty is the issue, try offering a guarantee that removes any risk.

By asking relevant questions and listening to responses, you can discover a wealth of actionable information.

4. Make Buying Easy

Sometimes, the roadblock isn’t psychological — it's technical. Complicated shopping carts, wordy Jargon or hefty price tags can instantly kill a sale.

As a seller, you should remove as many hurdles as possible. Consider solutions like:

Bold calls to action that make shopping a breeze.

Installment plans that make expensive items more affordable.

Multiple payment options — from credit cards to Telco to ewallet VTC Pay.

If you're not sure how to get started, ask friends and family members to go through the entire shopping experience. Be sure to analyze whatever pain points might lead to checkout abandonment.

The Most Important Selling Tip of All

Receiving a "no" can be incredibly discouraging, but the most successful salespeople are also the ones who get rejected the most often. Rather than quitting, however, these individuals use each objection, hesitation and rejection as learning experiences to refine their message and approach.

Adopt this same attitude and you'll be amazed how quickly you begin fulfilling orders.

To learn more about offering multiple payment options contact our payment team today for a free consultation.

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SELL EVERYTHING TO EVERYBODY - HOW CAN DO IT?

SELL EVERYTHING TO EVERYBODY – HOW CAN DO IT?

Negotiating is one of the most important life skills you could ever master, whether you’re requesting a raise, asking for a date, or trying to get your kids to finish their vegetables.

However, this skill is particularly useful when trying to “sell” products and services. Salesmanship can literally make or break your business — no matter what business you’re in.

Very few of us are bornwith this…

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Benefits of Online Payment Gateways

Benefits of Online Payment Gateways

When you’re looking for the best possible payment gateway for your customers, look no further than VTC Pay. Our company received a 2016 Customer’s Choice Award for Excellent Service. With its omnichannel capabilities, advanced security methods and fraud management tools, VTC Pay Payment Gateway has emerged as a top choice for our merchants and suppliers throughout Vietnam.

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Benefits of Online Payment Gateways

When you’re looking for the best possible payment gateway for your customers, look no further than VTC Pay. Our company received a 2016 Customer's Choice Award for Excellent Service. With its omnichannel capabilities, advanced security methods and fraud management tools, VTC Pay Payment Gateway has emerged as a top choice for our merchants and suppliers throughout Vietnam.

With VTC Pay payment gateway, your customers can make quick, efficient payments with just the click of a mouse.

Accept 32 local banks and 3 international card organizations (VISA/MasterCard/JCB) with fast, secure account verification.

Swipe or hand key payments via multiple interfaces, including mobile, POS systems, software integration, payment plugins and shopping carts, just to name a few.

Improve business operations with advanced management functions, including reports, batching, returns and voids, and user permissions

Secure your business and your customers’ data by complying with PCI-DSS standards

STREAMLINE TRANSACTIONS WITH A PAYMENTS GATEWAY

As the convenience of online shopping and bill payment rapidly increases, so does the need for merchants to utilize a secure online payment gateway system. Online payment gateways help merchants expand their business by improving customer service, increasing profits and minimizing late payments.

VTC PAY OFFERS A WIDE RANGE OF FEATURES TO MEET YOUR NEEDS

- Increasing customer through the access  of > 400,000 customers of VTC Pay- Being simple, convenient for customers to increase satisfaction and to get them buying again- Paying 24/7, immediately have money in your account, increasing the efficiency of revolving loan for business- Reducing the risk management of cash, avoiding losses or losses in the income and expenditure- Getting more rights-based communications from the system of the VTC communication channels... There are many benefits that you will surely get when integrating payment via VTC Pay.

GET STARTED TODAY

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Accepting Credit Cards and VTC Pay on Your eCommerce Site

Accepting Credit Cards and VTC Pay on Your eCommerce Site

In Start Your Own e-Business, the staff at Entrepreneur Press and writer Rich Mintzer explain how to build a dotcom business that will succeed. In this book, you’ll find recipes for success, road maps that pinpoint the hazards, and dozens of interviews with dotcom entrepreneurs who’ve proved they’ve got what it takes to survive in this sometimes fickle marketplace. In this edited excerpt, the…

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Accepting Credit Cards and VTC Pay on Your eCommerce Site

In Start Your Own e-Business, the staff at Entrepreneur Press and writer Rich Mintzer explain how to build a dotcom business that will succeed. In this book, you'll find recipes for success, road maps that pinpoint the hazards, and dozens of interviews with dotcom entrepreneurs who've proved they’ve got what it takes to survive in this sometimes fickle marketplace. In this edited excerpt, the authors discuss the two types of online payment processors you can use on your ecommerce site.

Thanks to the growth of ecommerce sites over the past ten years, credit card accounts are now very easy to set up on your site. The common methods of accepting credit card payments is either by using your own merchant account or by utilizing a payment gateway account, also known as a third-party merchant.

An internet merchant account gives you the ability to process credit cards and can be obtained through a bank. It's viewed by the bank as a line of credit that's extended to you. You must apply for this, just as you would any loan.

A good place to start your search for a merchant account is your own bank. Most issue credit cards, and if you have a long-term relationship with the institution, that’s a big plus. What if your bank says no? Try a few other local banks and even offer to move all your accounts there or at least set up a business account. You just may be rewarded with merchant status.

You'll also probably need a payment gateway account, which is an online credit card processor or transaction handler that's capable of hooking into credit card accounts belonging to the online shopper and your internet merchant account. The payment gateway handles verification and transfer requests. It interacts with the card issuer’s bank to authorize the credit card in real time when a purchase is made on a website.

The leading providers of payment gateway accounts targeting smaller merchants include:

PayPal

Authorize.Net

Cybersource

Verisign

VTC Pay

If you don’t have a merchant account, these providers can help you set one up and offer a payment gateway in one convenient package.

Credit cards aren’t processed cheaply, at least not for a startup. A typical fee schedule for a small-volume account (fewer than 1,000 transactions monthly) would include monthly processing fees ranging from $10 to $100, plus transaction fees of about 3 to 5 percent per transaction. Some providers also charge startup fees, but shop around--in many cases the startup fee will be waived if you ask.

VTC Pay

VTC Pay enables any individual or business with a mobile number to securely, easily and quickly send and receive payments online. VTC Pay’s service builds on the existing financial infrastructure of bank accounts and credit cards, and uses advanced proprietary fraud-prevention systems to create a safe, global, real-time payment solution.

VTC Pay has quickly become a leader in online payment solutions in Vietnam. There are 4 major VTC Pay offerings for merchants.

1. VTC Pay E-wallet:

is an electronic account created at https://pay.vtc.vn, allowing customers to store virtual money, which is equivalent to the value of money in their bank account, and make payment online and/or offline without cash

2. VTC Pay Online Payment Gateway:

is a service providing technical infrastructure to connect between the payment acceptance units and banks to assist customers to make payments in e-commerce transactions, electronic bill payments and other electronic payments

Supporting customer make payment quickly and easy via: VTC Pay E-Wallet, 32 Domestic Banks and 3 International Card Organizations (VISA/ MasterCard/ JCB)

3. VTC Pay Mastercard:

is a virtual prepaid card with all functions and complies with all security regulation of Mastercard. Customers can use the card to pay for products/services in all websites, e-commerce websites… which accept payment via Mastercard.

VTC Pay Master Card functions:

+ Easy Register

+ Highly encrypted

+ Global payment"

4. Payment Services for Digital Content

VTC supplies connection gateways to verify cards with the information: card type, card value and card status. Customers interact with partners’service, using scratched prepaid card to fill on the user interface of service

+ Scratched prepaid Card Payment:

Using scratched prepaid card as payment method for service

In order to make payment, customer need to fill the serial number, card number"

+ SMS Payment

Using SMS connection and telephone operator as payment method

In order to make payment, customers need to text messages to a provided fixed dialing code "

With this service, customers paying by credit card stay on your website for the entire transaction; VTC Pay is invisible. VTC Payment gateway is already integrated into many popular shopping carts, or it can be easily added to a custom-built shopping cart.

Both merchant and third-party accounts (aka gateway accounts) have their advantages and disadvantages. The primary advantages of having a merchant account include:

Ease of transaction

Protection. Banks are protected by the FDIC and merchant accounts typically come with fraud protection.

You maintain control since the transaction is directly between the customer and your merchant account. There's no intermediary handling the money or getting the customer’s information.

Typically you’ll receive payments faster than if you use a third-party payment service.

Your business name is on the transaction statement.

Disadvantages of a merchant account include:

Cost. Collecting credit and debit cards comes with a price tag for entrepreneurs.

You must handle disputes. If you have your own merchant account, you'll be responsible for disputes, chargebacks and any compliance, fraud or security issues that may arise.

Hidden fees. You can get hit with them, so read your contract very carefully.

Advantages of a third-party merchant account:

You don’t need to get approved for merchant services by a bank. If you have low credit scores or no credit, you can sidestep the approval process.

You have a company on your side when disputes arise. They can play middleman and work on behalf of your business.

VTC Pay Payment Gateway, if you choose to use it, is a very well known and trusted service for transactions.

Disadvantages of third-party merchants:

Potentially higher fees.

Their name is on the transaction and possibly links to their sites or those of other businesses.

Reputation. Not all third-party merchants are PayPal, and while many have excellent reputations, others are known for working primarily with adult websites. Still others have been cited for fraud. You need to choose carefully.

For more information, please visit: https://pay.vtc.vn/?l=en

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Online payment of E-commerce in Vietnam and what the future holds for the domestic market The fast

The fast growing rate of Internet users is one of the most notable aspects of Vietnam economy with up to 40 per cent of its people using Internet. According to statistics from the industry and trade ministry’s E-commerce and Information Technology Agency (VECITA), Internet and mobile play an important role in consumers’ trading with nearly 60% of online users conducting online purchases.

Eighty per cent of businesses will order or receive orders through e-commerce applications on the Internet or on mobile platforms.

The ground for e-commerce has been developed in terms of financial infrastructure which is expected to complete by 2020, keeping up with the development of various e-commerce models and activities in society.

Over the last five years, the strong growth of e-commerce has stimulated the e- payment services sector. In 2010, there were 84,500 e-wallet accounts opened with 17 banks providing services and 119 merchants accepting online payment.

Since then, the online payment network has been developing with POS network growing faster than ATM due to high cost of investment and operation of ATM machines. The payment market in Vietnam is still in early stage and very fragmented with only 11 companies being granted the trial license, but the number of competitors is much larger. The e-payment market in Vietnam currently focuses on different areas like banking transfer (OnePay, SmartLink, VNBC), e-commerce (Soha, Nganluong, Baokim), whole seller and retail, etc.

Though banked sector was large and grew rapidly, cash payment was still the main payment vehicle with cash on delivery (COD) method accounting for 64% of e-commerce transactions since the benefits of e-payment are not clear yet. Also the complex of 3D security incorporated into credit cards and the fact that customers can return products upon delivery have persuaded them to stick to their traditional payment method – COD.

According to statistics from VECITA, around 97% of businesses have transfer option for consumers and the rate has been increasing steadily in the past few years. Meanwhile, e-wallet and internet banking do not show any clear trends, despite the e-commerce transactions increasing by more than 30% annually.

The online payment platforms in Vietnam have not kept up with the development of e-commerce, which could be attributed to consumers’ unfamiliarity with e-payment, inherent risks associated with online financial services providers and led to the dominance of COD method.

As for the online vehicles, debit transaction still accounts for a large proportion of e-payment with banks trying to grow credit cards number to increase payment through their system. Underdeveloped credit rating system slows down the development of credit card and the domination of debit account puts the security on hand of consumers, which further limit the use of online payment tools.

Banks have put substantial efforts to upgrade banking technology in order to manage online transactions and have become the leader in successfully applying non-cash payment. However noncash payments were still the exception rather than the rule. The legal system, and the habits of authorities, companies and the general public perpetuated the use of cash.

The government has encouraged the use of electronic payment systems and to eliminate cash payment by building an online payment platform for e-commerce from 2016 to 2020. The government also encourages the development of e-commerce across borders along with export and import activities, taking up 15 per cent of B2C e-commerce sales by 2020 which would foster epayment to reduce transaction cost.

The recent merger between Banknetvn and Smartlink in Dec 2014 has proved the governmental support for e-payment market. The government has agreed to waive tax for the post-merger consolidated firm for up to five years, subject to both parties committed to ensuring high quality for customer usage. The transaction is also a signal of improved e-payment facilities to keep up with other markets through reduced controlling cost and better customer services.

It is expected that one hundred per cent of supermarkets, shopping malls and distribution chains will cooperate point of sale (POS) system, reaching the target of 250,000 POS at the end of 2015 and allowing non-cash payment when purchasing.

However it may question those parties as to whether the limitations of e-payment vehicles in Vietnam actually hinder the development of e-commerce market. In the summer 2014, $3bn poured into India’s e-commerce sector, where more than 200 digital commerce startups flush with private investment and venture capital funds and most of these online vendors largely operate on cash on delivery basis. Despite the heavy dependence on cash of India and some other countries including Indonesia and Colombia, digital marketplaces are innovating at a remarkable pace. But in the near future, nimble e-commerce players are simply working with and around the persistence of cash.

The South East Asian region comprising of Singapore, Malaysia, Thailand, Indonesia is experiencing an up surge in e-commerce thanks to well-established infrastructure, and resolving online payment was amongst the first issues to be taken care of. The development of e-payment platform in those countries has confirmed the unavoidable market trend toward online payment for e-commerce in Vietnam, especially when the online trading businesses are trying to expand abroad. However how long it would take for to reach the oversea standard is still a puzzle for Vietnamese e-commerce market.

From J&J (Trung Anh Nguyen and Phuong Do, IDG Vietnam)

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Online payment of E-commerce in Vietnam and what the future holds for the domestic market The fast The fast growing rate of Internet users is one of the most notable aspects of Vietnam economy with up to 40 per cent of its people using Internet.

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The Fee Related With an Online Payment Gateway inVietnam

Payment gateway offers the desired and vital link between the online seller (merchant), its client, the client’s online payment instrument provider (credit/debit card or any other online payment mode as chosen by the client for making online payment), and the bank account of the online merchant.

The payment gateway facilitates the online payment made by the client, gathers the funds from client’s bank or other entities (Digital wallets/Cash Card, etc.) and then transfers those funds to the bank account of the merchant. To provide these services, payment gateway charges fees to an online seller, which could vary depending upon several factors.

If you are an online merchant, you need to know about the fee related with a payment gateway, that you will have to pay once you hire the services of a payment gateway in Vietnam. Your payment gateway provider will also offer you a merchant account.

The Costs Determinants

Various factors govern the cost of a payment gateway in Vietnam for your e-commerce.

● Setup Fee

This one-time fee is paid when you sign-up for a payment gateway initially. The fee is non-recurring in nature and is to be paid towards payment gateway integration within your e-commerce web portal.

● Annual/Monthly Maintenance Fees

You will be required to pay a pre-designated sum of money or fee every month/yearly to the payment gateway provider towards maintenance charges for the services provided by payment gateway. If you enroll for more services, this fee may get higher. For instance, a leading payment gateway in Vietnam may offer you EMI or auto-billing service, so that a pre-designated sum is charged to your client’s credit card each month for a product or service he/she has purchased. In this case, there may be some extra fee charged by the payment gateway provider. Some payment gateway providers also offer you a range of fraud, risk prevention, and management services, and you may be required to pay more when you avail these.

● Discount Rates

This fee amount is charged by the payment gateway provider for every transaction your e-commerce processes. If you hire an affordable payment service like, the discount rates can vary from 1.5% to 3.75% (lesser for debit cards and higher for international credit cards). It also varies with other payment modes. These fee amounts are split between the credit/debit card provider, the online gateway provider, and your merchant account provider. With most payment gateways the cost decreases when your sales grow.

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The Fee Related With an Online Payment Gateway inVietnam

The Fee Related With an Online Payment Gateway inVietnam

Payment gateway offers the desired and vital link between the online seller (merchant), its client, the client’s online payment instrument provider (credit/debit card or any other online payment mode as chosen by the client for making online payment), and the bank account of the online merchant.

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10 Questions to Ask When Creating an Online Store

10 Questions to Ask When Creating an Online Store

If your company sells goods in a brick-and-mortar store but not online, you could be missing out on an incredible revenue-generating opportunity. And using a good online payment gateway is a great way to increase your online revenue.

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10 Questions to Ask When Creating an Online Store

If your company sells goods in a brick-and-mortar store but not online, you could be missing out on an incredible revenue-generating opportunity. And using a good online payment gateway is a great way to increase your online revenue.

Is your business ready to reap some of those online sales? Launching an online store can be challenging for small businesses, which are often short on time, budget and staff. But ecommerce vendors can help you make designing and maintaining an online store relatively simple and affordable.

Here are 10 important questions to ask when creating your company's first online store:

1. How do I start building my online store?

If you can't afford to hire someone to build a custom online store, don't worry. There are plenty of ecommerce vendors that can help you create one quickly. "They can take the hassle and headache of hard coding, hosting and doing maintenance on a server of your own out of the online store equation," says Julian Barkat, director of ecommerce and online marketing at Eggs to Apples, a Philadelphia digital marketing agency.

Such companies as Bigcommerce, Shopify, Goodsie, Jumpseller andVolusion let you design the overall look, feel and functionality of your online store. They also let you do things such as upload your product catalog, set up customer shopping carts, securely accept online payments and handle order fulfillment. These services securely host your online store on their own servers. You can link to your online store from your company's main website.

Ecommerce services such as these usually require some basic initial set-up work on your part.

2. How can I best customize the overall look of my online store?

In most cases, if your company already has a website, your ecommerce site should reflect your existing online look, including your logos and color schemes. If you don't have a business website, choose background and accent colors for your ecommerce site that complement your logo.

Most design templates from ecommerce vendors come with preset theme settings that don't require HTML or CSS knowledge to customize. So, it should be relatively easy to upload your logo and product images and add banners, slideshows and more.

3. What type of online payment system should I use?

We recommends VTC Pay when you're starting out. That's mainly because the third-party processor is so widely known as a secure system for accepting online payments.

You don’t necessarily need to limit yourself to one payment gateway. Lots of ecommerce platforms allow you to offer multiple payment options to your customers. The most popular ‘secondary’ option to offer is VTC Pay. Lots of consumers have VTC Pay accounts and many of them prefer to pay by VTC Pay rather than enter credit card details into yet another website. Even if you don’t use VTC Pay as your main payment gateway, consider offering VTC Pay as an alternative way for customers to pay. It can also be a good backup in case of any problems with your primary payment gateway or merchant account.

4. How will I handle customer service?

To respond to customers' concerns efficiently, you may want to choose an ecommerce vendor that gives you access to a reliable customer relationship management (CRM) tool. Most of the major ecommerce vendors offer CRM options, sometimes for an added fee ranging between about $25 and $75 per month.

CRM tools document, streamline and structure the many ways merchants interact with customers in one central place, including customer contact information, recent purchases, complaints and pending orders.

Heather Peterson, founder of Girl Charlee Inc., a Signal Hill, Calif.-based online retailer and wholesaler of vintage and rare knit fabrics, suggests getting a toll-free phone number specifically dedicated to customer service. Another option is to set up a live chat in your online store, she says, but only if you can operate it 24/7, which online shoppers have come to expect.

5. How should I determine shipping costs?

It's often easier and more accurate to leave exact shipping-cost calculations -- both to you and your customer -- to the carrier you use. The major carriers will calculate shipping costs for you for free, and most major ecommerce vendors allow you to integrate those costs into your store's checkout section.

On the other hand, you may want to consider offering free shipping, at least for orders over a certain amount. If your direct competitors provide free shipping, Peterson suggests that you consider it, too, if you can afford it.

6. How do I create the best product images and descriptions?

"Online shoppers don't get to see, touch, feel or smell your product," says Barkat, so the next best thing is a crisp, clear product image. While he says you shouldn't entirely cut corners on photography, you don't have to hire a professional to get high-quality images. But you should use "a 16-megapixel DSLR camera, decent lighting and a light box," he advises. A photo lightbox is a tent-like container with several light bulbs aimed at its interior that photography professionals often use to create well-illuminated images of objects.

Peterson says written product descriptions should be short, yet rich with enough interesting details to pique customer interest. "Try to use compelling adjectives and phrases that evoke an emotion when someone reads your description," she says, "without getting too carried away or taking up too much space." In addition to noting the price, you may want to include product uses, dimensions and other defining characteristics.

7. Should I allow customer reviews and social sharing?

Giving customers the ability to comment on your products and leave ratings can help boost their confidence in your store, Peterson says. Positive reviews and social media shares could lead to more sales, but there's also the risk of negative comments. Several major ecommerce services offer customer review options that allow you to respond to -- or remove -- undesirable comments.

While Peterson hasn't yet enabled customer comments within her online store, she has made it possible for customers to "like" her products on Facebook, "pin" images of them to their Pinterest pages and email images and brief descriptions of them directly from the product listings.

8. How will I start to attract shoppers?

After your store is up and running, spread the word both online and off. Placing links to your store's web address on your company's main website and in your email newsletter campaigns would be a good start. Peterson also recommends creating Facebook, Twitter, Pinterest and YouTube accounts representing your online store. Updating your company's social media sites a few times a day can drive traffic to your store by drawing attention to daily deals and other promotions.

It's also advisable to choose an ecommerce vendor that automatically uses search engine optimization (SEO) for your store's content. SEO tactics can give your store a higher ranking in search results on Google, Bing and Yahoo.

9. How should I handle returns?

Every store has to deal with returned items. Double-check that your ecommerce vendor provides built-in tools that let you quickly and easily replace merchandise or refund purchase prices, restock your inventory and send emails to customers about the status of their return.

10. How can I track the success of my store?

Try to select an ecommerce vendor that offers free self-service analytics, often driven by Google Analytics, and other reporting tools to help you track your store's performance over time. These can tell you how many people are visiting your store and how often, where they live and how they found you. They can also show you which websites drive the most traffic to your store and which products customers look at and purchase most and least often.

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What is Difference Between Payment Gateway, a Payment Processor, and a Merchant Account?

Are you a seller who is ready to go online? For many new online merchants it is a very cumbersome and difficult process to understand ecommerce. They often fail to understand the basics of ecommerce and consequently face problems in setting up their online businesses.

In this article, I discuss one of the most important aspect of ecommerce, the difference between a Payment gateway, Payment processor and a Merchant account.

Payment Gateway

A payment gateway is your doorway to making sales online.  A Payment gateway will allow you to charge your customer’s credit/debit card with the purchase he/she makes online.

Just like a physical point of sales terminal at your bricks and mortar retail store, the Payment Gateway authorizes you to take card payments directly from your website. The payment gateway acts as a mediator between the transactions that take place on your website and the payment processor.  This is needed because it is prohibited, due to security reasons, to transmit transaction information directly from your website to a payment processor. Most online merchant accounts come with a payment gateway included, like VTC Pay (top1 payment gateway in Vietnam).

Payment Processor

Payment processors or Acquirers are the financial institutions that work in the background to provide all the payment processing services used by an online merchant. These companies usually have partnerships with other companies that directly deal with consumers or merchants.

Payment processors make reselling agreements with Payment gateways or Merchant account providers in order to provide their services directly to internet merchants. Some Payment Processors do provide direct merchant services, but most companies focus on processing payments only. Payment Processors usually don’t market their services and prefer to stay in the background, processing payments for Independent sales organizations (ISOs) and Member service providers (MSPs) who have partnered with them.

Merchant Accounts

Merchant accounts are the type of bank accounts that authorize you to accept credit or debit cards payments online. These accounts are required if you want to use a payment gateway to process transactions from your website.

Many companies including some payment processors and most payment gateways provide merchant accounts. These accounts can also be opened with some large banks that provide such services.

In most cases, Independent sales organizations (ISOs) or Member Service Provider (MSP) provide these accounts. These organizations have agreements with payment processors to provide such merchant services. In addition to this, Independent contractors or Agents of ISOs also provide Merchant accounts.

In all cases, to acquire a merchant account, one must have some sort of arrangement with a payment processor to charge a customer’s credit/debit card.

There are a variety of payment gateways and payment processors out there. They vary in the monthly fees they charge, transaction costs they incur and in various other aspects. It is vital to choose the right company for your merchant account if you plan to run an online business.

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What is Difference Between Payment Gateway, a Payment Processor, and a Merchant Account?

What is Difference Between Payment Gateway, a Payment Processor, and a Merchant Account?

Are you a seller who is ready to go online? For many new online merchants it is a very cumbersome and difficult process to understand ecommerce. They often fail to understand the basics of ecommerce and consequently face problems in setting up their online businesses.

In this article, I discuss one of the most important aspect of ecommerce, the difference between a Payment gateway, Payment…