E-commerce Merchant Account is business account that enable merchants accept payments through cashless instrument like, Visa card, MasterCard and other related e-cards. Non-card payment option like PayPal, is use solely in card not present transactions, to compliment merchants e-payment options.
These cards are readily available on request at banks. In real stores, customers use their cards to pay into merchant accounts via Point of Sales machines. While in online transactions, buyers make payments with their cards, PayPal account or use other payment option available on the payment gateway, at the Check-out page of merchant web stores.
E-commerce merchants adopt multiple e-payment options, to accommodate customers that may not have assess to all brand of electronic cards. It also ensure inclusion of those consumers that prefer using non-card payment options online for more security. It is also common knowledge that, having multiple payment options on merchants payment gateway, is a strategy for market boost for increase in return on investment.
Merchant Account Issuers
Apart from the banking industry, known as Issuing Banks, other authorized as partner in e-payment are the Payment Service Providers. Issuing banks deal solely with Visa and MasterCard as producer of these cards.
Payment Service Providers are commissioned as agents, after thorough assessment of the PSP’s gateway infrastructures and certified by the banking regulation body. For secure e-commerce payment transactions, merchant web stores and their payment gateway interface must comply strictly, with e-payment standard, as prescribed in (PCI DSS) by, Security Standards Council.
Payment Service Providers offer non-card payment service to e-commerce merchants as option to card payment. They provide the payment gateway that make possible, transfer of money from buyers account to merchants accounts.
Another growing phenomenon in the electronic payment market is Mobile Payment or mobile money. Mobile money not only fascilitate payment into merchant account, but also, made possible, a whole lots of business transactions
such as,money transfer, utility bill settlement, credit recharge and lots more.