Top Online Payment Gateways in the Philippines

Gone are the days where physical money, cash, dominate the payment transactions between customers and merchants. With the rise of e-commerce sites or drop-shipping that have a been a huge game-changer in the industry of business, online payment solution have become part of everyone’s daily lives.

Did you know that 92% of today’s currency is digital?

Online payment basically revolves around two (2) methods: payment made through cards (i.e. credit, debit, prepaid card and the like) and those that aren’t (i.e. PayPal, GCash and alike).

This advancement in payment solution also seeks to guarantee the safety of global payment from customers worldwide through a cashless e-payment system. E-commerce services integrated a secured payment platform so they can accept credit card payments.

These online payment methods implement a payment gateway (PG) – a third-party service that automates payment transaction between consumers and merchants. The third-party service providers, payment gateway providers, offer processing, verification, acceptance or rejection of credit card, debit card and alike on behalf of the seller or merchant.

This system accepting e-commerce payments is indeed a foolproof online payment solutions for merchant services. Below entails fastest payment gateway providers in the Philippines – its comparison and edge among its competitors.

The benefits of using a payment gateway?

The advancement of technology led to a shift on the behavior of most people – everything should and maybe done fast. This also applies to transactions that involve money, that’s why payment gateways are beneficial to online payments for the following reasons:

  1. PCI-DSS
    This security feature allows an individual to store personal data in a portal or gateway. This should be useful for individuals who frequently use an app for monetary transactions (e.g. GCash in transferring money to another bank) as it protects any personal data provide from any cybersecurity threats.
  2. White-Label Wallet
    Feature allows an individual to make digital transactions through mobile wallet apps. With this, an individual who may be sitting in a train may transfer his or her money from the issuing bank to his or her mobile wallet app and from there make payments to other apps, website, or banks.
  3. Fraud Screening Tools
    Several payment gateway providers uses Card Code Value (CCV), Card Verification Value (CVV), or Address Verification Service (AVS) to prevent any fraudulent acts from occurring.
  4. Payments are 50% faster Invoices made through payment gateways are reported to receive two (2) weeks earlier than the traditional payment method.
  5. Demand and popularity
    Definitely, over time the prompt service provided by payment gateways will serve as a basis of the efficiency of a merchant’s business operation. That’s why, it’s vital for a business to keep itself abreast with the current trends that can make transactions between customer and merchant easier.
  6. User-friendly
    Payment gateways can be setup easily in a cloud accounting software. User manuals will be provided for merchants. Thus, one need not to be an expert in the field to be familiar on how the software works.
  7. Cost-effective
    With only two (2) to four (4) percent of the value of invoice to be incurred for the acquisition of a payment gateway service, it’s considered to be an effective manner of saving business expenses without putting the operations at jeopardy.
  8. Improve customer satisfaction
    More than ever, any business aims to provide their customers with seamless yet secured services. Through the payment gateway, a business should be at ease that their branding will be even more protected as data leaks and other cybersecurity threats can be prevented.

The Payment Gateway for a Website – Transaction Types

There are transaction types that a payment gateway service provider may offer and it all varies on the type of e-commerce site you are operating:

  1. Authorization – This method allows the merchant to determine the capability of a custmer to pay for the service or product and to assess if the customer has sufficient funds on his or her credit card. This should be ideal for merchants who’ll be dealing with customers across the globe so as to guarantee that items to be shipped will be paid immediately.
  2. Capture – This transaction type allows the merchant to capture the fund previously authorized and then send it for settlement. In a real llife scenario, when a merchant was able to sell a product online that took time to be shipped, he or she needs to authorize the payment and the capture the amount to be transferred to the account.
  3. Sale – This method is a combination of the first two. If the merchant was able to fulfill the order(s) immediately, the amount will be charged and transferred to the merchan’ts account instantly. This should be ideal for merchant’s services include membership so that you can immediately provide user access to your customers.
  4. Refund – It’s inevitable for business to experience a refund. For online payments that will experience such circumstances, a refund transaction is also available.
  5. Void – Voild transaction is applicable for transactions that have not yet been settled and may take at least three (3) to five (5) days before an actual refund takes place. This method is considered to be cheaper than the latter.

Top 10 Payment Gateway Provider in the Philippines

As you may already know, there are several payment gateway providers in the Philippines that it may be hard to determine the one. However, you may use the following guides before to determine which payment gateway provider works well with the business model that your business is following:

  • The functions that the business require
  • The target countries to gain sale
  • The target currencies the business may work with

Here are some pointers that you may consider in getting around the payment gateway:

  • Identify the currency or currencies you’ll need to undergo authorization and settlements
  • If you are targeting international market as well, your business needs to have a concrete presence through obtaining merchant account(s) in the desired issuing country(ies).
  • You may also opt for payment processors that can perform international transactions and currency conversion.
  • If the needs of your business are complex and customization is a priority, you should opt for open source payment gateway software provider that has the capability to work on the features custom-fit for your business.

1. Dragonpay

  • How it works – As an online payment platform, Dragonpay has the capability to monitor payments made online and offline and let the merchants know of the completed payments before shipping of products and provision of services.
  • Pros and Cons
    1. Security – The online payment platform has secured online banking environment, protecting both customers and merchants against fraud.
    2. Market – It caters to various clientele – from those who has bank account to those who don’t.
    3. Cost-effective – It promises fixed charge per transaction instead of percentage wit the goal of leaving large savings to the merchants.
  • How to apply – To apply, you may reach Dragonpay through (+632) 8967 6275 or through their Contact Us page.
  • Key Features – Dragonpay utilizes SSL (Secure Socket Layer) to guarantee that all data being transmitted from browser to server are protected. Dragonpay also secures that all online banking IDs and passwords are not save to prevent any cyber threat from occurring.
  • Dragonpay for WooCommerce WordPress Plugin
  • Official Website:
  • Android Play Store: Google Play
  • Hotline: Customer +632-8655-6820 Business +632-8967-6275

2. PayMaya

  • How it works – PayMaya has Scan-to-Pay system that deliver less errors and faster payment transaction through a smartphone. All the merchants have to do is to display a QR code of the business and the customer will only scan this and have the payment quickly sent.
  • Pros and Cons
    1. Merchants can accept VISA, Mastercard, WeChat, PayMaya QR, and other wallets through its One by PayMaya Enterprise.
  • How to apply – The merchant has to download the app and register his or her business.
  • Key Features – It also has TOUCH by PayMaya that lets a merchant accept card payments for over-the-counter transactions, deliverables, meet-ups, and organized sales events.
    1. Application Programming Interface: Yes –
    2. PayMaya Checkout WooCommerce plugin
    3. PayMaya Business Shopify Plugin
    4. Magneto Plugin / Blog
  • Hotline: (632) 845 7788
  • Official Website:

3. GCash

  • How it works – Merchants should have Globe SIM before activating his or her GCash Account. Through the GCash QR, it can accept mobile payments from customer with the use of RQR technology that is promised to be fast, convenient, and secure.
  • Pros and Cons
    1. There are no setup fees;
    2. Lower rates compared to debit and credit cards;
    3. Continuous media and marketing promos and blasts that merchants may participate in; and
    4. Reports to assess performance across all branches.
  • How to apply
    1. Download and fill out the forms according to business type;
    2. Send the completed forms to and include contact details and head office address;
    3. Merchant will be contacted to confirm the application; and
    4. Complete GCash application through sending hard copy of forms to the representative.
  • Key Features – It has a nationwide customer base and has the ability to boost sales of the merchant’s business; merchants can analyze transactions through the GCash QR Reports.
    1. Application Programming Interface: Yes –
  • Official Website:

4. IPay88

  • How it works – A merchant may choose from the variety of payments such as: credit and debit card, Bancnet, GCash, PayPal, and over the counter through Dragonpay.
  • Pros and Cons – It’s a credible, established, and well-known platform.
  • How to apply
    1. Applicant should download the ZIP file from the WooCommerce account;
    2. From the WordPress account upload the file and install;
    3. From the WooCommerce store, go to Checkout and click iPay88;
    4. Enable iPay88 and choose the payment gateway;
    5. Add Method Title and Description;
    6. Enter the iPay99 Merchand Code and Key; and
    7. Enable Debug Log and Save Changes.
  • Key Features – It offers test payment for first-time users to assess the compatibility of its feature to the business model of a company.
  • Official Website:
  • Plugin for Woocommerce: Payssion
  • How to be a gcash merchant: visit

5. PayPal

  • How it works – With more than 200 markets and 237 million account holder all over the globe, PayPal allows its merchants and customer to create transactions in more than 100 currencies.
  • Pros and Cons – Here are the advantages of having a PayPal account:
    1. It employs a one-time encoding of credit or debit card information, which means users won’t have to worry about data breach.
    2. You can input several bank, credit, debit cards
    3. You can send money and it has no membership, processing or service charges.
  • How to apply – To utilize the advantages of PayPal, the following instructions are as follows:
    1. In the Sign Up page, choose the Business Account;
    2. Then select the payment solution (if you are unsure, you may click I don’t know.)
    3. Fill out information relevant to your business and read through the PayPal Terms and Conditions before clicking I Agree.
  • Key Features – As PayPal has the ability to connect a user’s bank account directly, a customer may pay for online purchases without a need for a credit card. It also aides in better security layers for its clients through its security protocols.
    1. Application Programming Interface: Yes –
    2. WooCommerce PayPal Gateway: easypayment, naa986, Inpsyde GmbH
  • Official Website:

6. PesoPay

  • How it works – PesoPay is the leading online payment gateway system in the Philippines. We provide secure and seamless electronic payment solutions for both SME’s and large enterprises.Online payment system delivers reliable merchant services that allow businesses to accept online payments ranging from credit cards, debit ATM cards, cash or over-the-counter payments, e-Wallet payments and PayPal.
  • Pros and Cons – The most comprehensive integrated online debit payment solution ever forbusinesses in Asia. Cash payment processing service that enables online merchants to sell online and get paid in cash.
  • How to apply for merchant – The portal may be accessed in one way:
    1. Through
  • Key Features
    1. Tap Non-credit card holders – Extend your market to millions ofcustomers who do not have creditcards for online shopping.
    2. Generate eVouchers that has a single static codeor dynamic codes
    3. Easy and Fast Set-up – Approval in as fast as 3 days with livemerchant ID, payment tracker widgetand APIs for integration.
    4. Increase customer confidenceand decrease customer complaints – Reduce unsatisfied customers whileincreasing their confidence by allowing themto track their payment status in real-time.
    5. Streamline operations and reports – Merchants can take advantage of accuratereports, easier reconciliation, and lessercustomer complaints.
    6. Decrease shopping cart abandonment – Lessen shopping cart abandonment byallowing non-credit card holders to shoponline and pay by cash.
  • Official Website:

7. Tagcash

  • How it works – This e-wallets allows its consumers to accept, send, receive, and disburse money, tokens, and rewards. Moreover, it lets consumers to create their own currencies and even lend or borrowe money.
  • Pros and Cons – Tagcash prides itself with Equity Crowdfunding – it can aide in raising up to PHP 10M through selling a percentage of a company to the public through the portal of Tagcash. Here’s a walkthrough on how the Tagcash Crowdfunding works:
    1. An existing or startup companny may request a raise for funding through a two (2) to five (5) minute video pitch, business plan, and the desired amount, as well as the percentage of the company you’d like to sell.
    2. After approval, the campaign will be viewable for 30 days and open for another 60 days for the interested shareholdes.
    3. If the campaign meets it arget, it will be closed and the funders will receive the accumulated amount. If it’s not met, the funds will be returned to the supposed to be shareholders.
    4. Shares can be sold or traded and investors can even include their customers who see potential in the pitch.
  • How to apply – To apply, a potential user may download their mobile application. For further clarifications, Tagcash can be reached through their e-mails –; or call at (+632) 7955 7081; (+632) 8804 2486.
  • Key Features – Tagcash allows its users to create application modules or whitelable wallet enabled apps with one ore more services using the platform of Tagcash.
  • Creating a cashless future
  • E-Money, rewards and crypto currencies
  • Build apss and services that embed uses of digital money
  • Application Programming Interface: Yes –
  • Official Website:

8. AltPayNet

  • How it works – As AltPayNet is connected to trusted banks and financial institutions, it has innovative payment services that caters to the MSMEs – from acceptance of credit cards, e-wallets, online transfer, and even as a reliable payment gateway that offers acceptance of Bitcoin.
  • Pros and Cons – It caters to direct debit, credit card payments, as well as Bitcoins, and online transfer. It also has E-money, wallet through PayPal, Skrill, CashU, and the like.
  • How to apply – To apply, interested applicants may send an e-mail to or fill out the AltPayNet Contact Us Form.
  • Key Features – As a payment service provider both in the local and international market, the AltPayNet offers the following services to their merchants:
    1. E-Invoicing and e-Payments
    2. Kloudhouse – Ideal for real estate property management and payments
    3. Drop and Snap Instant Online Checkout – Ideal for businesses that don’t have an existing e-commerce site
    4. Pago de Caridad – Serves as a crowdfunding platform for charities and non-profit organizations (NGOs)
    5. Hotel Reservation – Best for hospital management merchant solutions
  • Official Website:

9. 2CheckOut

  • How it works – 2CheckOut allows its merchants to accpet mobile and online payments from customers all over the globe, ensuring security and fast-delivery of goods.
  • Pros and Cons – As it is in the industry for almost two (2) decades, the 2CheckOut takes pride in its Payment Card Industry (PCI) Data Security Standard that protects its 50,000 merchants, eight (8) payment types, 87 currencies, and 200 global markets.
  • How to apply – To get an account at 2Checkout, you must submit application on their website.
  • Key Features
    1. Whether you’re tapping into international markets, looking to boost conversion rates, or running a subscription-based business, 2Checkout can help you tackle the complexities of digital commerce, globally. The Avangate Monetization Platform is comprehensive and flexible, so you can quickly pursue new market opportunities and deliver exceptional user experiences.
    2. Application Programming Interface: Yes –
  • Official Website:

10. Payoneer

  • How it works – Merchants can get paid from international receiving accounts and at the same time expand into new marketplaces.
  • Pros and Cons – You can withdraw funds to your local bank account, spend online or in stores with the Payoneer Prepaid Mastercard as well as pay other Payoneer customers for free.
  • How to apply – Upon approval of your merchant application form you can log in to your preferred platform and choose Payoneer as your paymeht method. Now, you can send an invoice to customer via the business app you’re working with. The payment will then arrive to payoneer account and can withdraw funds to your bank account.
  • Official Website:

Best alternative payments for a merchant account?

Here are some alternatives for merchant accounts that you may try:

1. Paypal

The site offers online payment solutions without requiring a merchant account. This should be ideal for merchants who would like to start their e-commerce platform as soon as possible. The PayPal has the following features and terms:

  • PayPal Standard and les credit card payments, bank transfer and regular PayPal payments on a per transaction basis as this type does not have monthly fees. To integrate this on your business, just place a PayPal button on the checkout page of your e-commerce site.
  • PayPal Pro incurs monthly payment and provides a professional ambiance to a e-commerce site through its payment process that works directly on the site compared to the manner of its standard version (the customer will be redirected to PayPal). Moreover, this method allows to make payments made through phone, fax, or mail.

2. Credit Card Readers

These are devices plug into smart phones or iPads. Some of its examples are as follows:

  • Quickbooks Paymet of Intuit – A system that provides free mobile card reader and integration of QuickBooks in a cost-effective transaction fee (2.4% plus 25 USD per swip, dip, or tap).
  • Point of Sale of Square’s Point – Its swipe, dip, and tap fees cost 2.65% per transaction.
  • Mobile Payment Solution of PayPal – It has integrated the PayPal payment system and provides flat fee of 2.7% per transaction.

Why does a merchant or business need a payment gateway solution?

These payment gateways are considered to play a valuable role in the e-commerce transactions as it authorizes payments and follows rigorous process before finalizing a transaction.

To give you an insight, here’s an overview on how a payment gateway works:

  1. Encryption.
    The web browser encrypts any data that a merchant will receive from his/her web server. The payment gateway then sends the transaction data to the payment processor.
  2. Authorization.
    The payment processor then forwards the data to the card’s issuing bank. The bank reviews the authorization request before approving or denying the request.
  3. Confirmation.
    Status of request will be forwarded to the payment gateway. The payment gateway then interprets and generates the response before the merchant confirms the order. This process usually takes a few seconds only.

As a scenario, once a customer is satisfied with the items and/or services to be purchased, the following actions take place:

  1. Once the customer clicks the “Submit” or “Checkout” button, the e-commerce site takes the customer to a payment gateway wherein all necessary bank or card details should be provided.
  2. After which, the payment gateway takes the customer to a page of the issuing bank or a secured page to seek authorization of the transaction.
  3. Upon approval, the issuing bank will verify if the customer has enough balance to continue the transaction. Statement from the issuing bank will be sent to the merchant.
  4. The merchant will then send an error message to the customer if the bank will deny the transaction and if the bank sends an approved message, the merchant will then seek approval from the issuing bank.
  5. The issuing bank will then settle the money through the payment gateway and the latter settles this with the merchant.
  6. Once this process is completed, the customer will receive a confirmation message of the order being completed.

9 Things to Look for in a Payment Gateway

You should not just pay for the first payment gateway you’ll see. Here are some considerations in choosing a service provider:

  1. Modern or Classic – If you’ll opt for classic payment gateway, you’ll need to apply for a direct merchant account. On the other hand, modern payment gateway works without one. Thus, modern payment is consdired to be easier but can incur high fees. An example of a classic payment gateway is and PayPal for modern counterpart.
  2. Encryption Practice – You should guarantee that as much as possible layers of protections are provided to prevent any breach of data that can put a dent to the repurtation of your business.
  3. Compatibility – Of course, the payment gateway should be fit with the needs of your business which may include linking of payment gateway to an existing invoicing software or other system related to financial data management.
  4. Speed – To provide a satisfying customer experience, you’ll nee to go with processor that can secure credit card authorization within seconds. You should also consider how quickly you’d like the payment to be transferred to your account as some may take two (2) to three (3) days to be complete.
  5. Reporting Function – If you’d like to review all transactions and analyze any fees, you should go with gateways that offers this and try out the formats and types they offer before purchasing one.
  6. Fraud Detection – Always go for gateways that aides you with identifying suspicious activities.
  7. Invoice Features – If you don’t have existing invoicing software, you may opt for built-in invoicing feature. This should help you to have seamless payment process and would not rely on various platforms.
  8. User-Interface and Usability – Straightforward interface that anyone who will open your account can work around the features and use it with little to none issues.
  9. Cost and Fees – Costs and fees of payment gateway providers may vary. Some may offer innovative features but also have greater fees. Some has free setup and montly payments, but have high chargebacks.There are also who offer flat monthly fee or additional fees per type of transaction.

Becoming an e-commerce merchant

To becoming a successful e-commerce merchant doesn’t happen overnight. However, here are quick four strategies that a merchant may follow to get through the tight competition online:

  1. Make the most of the mobile generation – Almost all businesses have integrated their businesses into mobile applications. Thus, you should provide yours with an unforgettable user experience. You may come up with strategies that will make customers to stay longer on your application and perform certain actions such as proceeding to checkout page.
  2. Less human factors – Utilize the softwares that can provide faster turn around time and drive more customers. This does not mean eliminating employees, but making use of your people to more profitable responsibilities and tasks.
  3. Meet customers’ expectations – Analyze what your customers needs and from there roots the content, marketing campaigns that can boost your e–commerce site.
  4. Do not ignore traditional strategies – Just because everything’s been revolving around technology, you’d neglect the solid traditional strategies such as having a pop-up store and the like.

As of the moment, payment gateway service providers can’t assure that it can meet regulatory requirements of other countries and its currencies. That’s why it’s best to carefully assess the countries and currencies you feel have the market you are looking for. The payment gateway you’ll choose can have a huge impact on your business’ success, thus work with a provider that has already built credibility and reputation in the industry.

What makes payment gateway different from electronic money?

The payment gateway which is designed by Payment Service Providers (PSP) functions as a middle man between clients’ whose funds do not belong to the payment enterprise itself. Other advantages of using payment gateway provider are as follows:

  1. A customer may pay for services and goods regardless of the chosen payment method.
  2. Convert the electronic money to another currency.
  3. Settlement of transactions with merchants whose cards may come from various issuing banks.
  4. Transferring of electronic money from one bank to another in a cost-effective charge.
  5. It can allow millions of customers to utilize the software at the same time, an advantage for merchants who target to sell goods and/or services at an enormous amount.

How do payment gateways ensure security of data?

Here are the protocol measures that a payment gateway provider follows to guarantee the safety of data being transferred:

  1. Transaction goes through a HTTPS (S stands for Secure) web address and the system utilizes a signed request, usually a secret word, that is shared between the merchant and payment gateway only.
  2. To guarantee the safety of they payment page, the IP (Internet Protocol) of the requesting server is verified first to check for any malicious activity.
  3. A Virtual Payer Authentication (VPA) is an added security layer that aides customers and merchants to further authenticate both parties.

Why do you need mobile payments?

With more and more of the global population utlizing mobile devices as part of their everyday lives, there’s already a growing number of entrepreneurs adapting to these changes through making mobile applications for their businesses. Here are the advantages of venturing in mobile payments for your business.

  1. Customer experience – With the checkout page available through a mobile app, it will make purchasing more convenient for customers. Payment gateway also provides a mobile-optimized form to ease the payment transaction.
  2. Cross-promotion – A merchant has the opportunity to display other product(s) or service(s) that may lead to potential profit.
  3. Straight-forward User Interface (UI) Design – Users are keen on straight-forward design, especially on the checkout page. So it’s ideal that on such page, there should be minimal or none menu links, search bar or social media links.
  4. Minimum text-input – Since mobile devices will have better screen, it’s ideal for the mobile app to have auto-filll features or provide appropriate keywords (e.g. if the field is asking for credit card, a numeric keyboard should be shown).
  5. Strong branding and credibility – Any potential clients will first look if the merchant has a website, mobile app, and social media pages. That’s why integrating the business with these technological innovatives should drive more sales.

What are recurring payments?

It can be a hassle for a customer if he or she has to choose the same product(s) or service(s) every time he or she is in a merchant’s site or app. It can also be a dilemma if the customer has to remember to send payments for product(s) purchased monthly or annually.

That’s why setting up recurring payments give the merchant the chance to sell the product(s) or service(s) automatically. Through this method, it not only helps the customers, but also the merchants to determine the cash flow. Recurring payments work as follows:

  1. A customer chooses the recurring payment option on the site or app of the merchant;
  2. The customer accepts the Terms and Conditions and wait for the Authorization.
  3. The customer should enter the card information and confirm the payment.
  4. From then, the customer will be charged authomatically until the customer chooses to cancel the subscription.

What are the benefits of recurring payments?

Aside from boosting the sales of the merchant’s business and minimizing the effort of the customer, here are some advantages of using this subscription payments:

  1. The merchant will be assured that payments will be received on time and able to predict the sales of the business.
  2. The merchant may setup a free trial so as to help clients make better decision on whether or not a product or service should be purchased.
  3. Considered to be a time-saver and cost-effective for customers.
  4. It creates better relationship with customers.
  5. The customers can opt for several plans of the merchant.
  6. The merchant will be able to focus time and effort on other business-related concerns.

What is an e-payment system?

Using an electronic medium, one can make payments online. This manner, also known as e-payment system, has grown overtime due to the demand of online banking and shopping. There are two (2) e-payment method – the credit and cash payment systems:

1. Credit Payment System

The credit payment system has three (3) types:

  1. Credit Card – This method requires a card of an issuing bank, eliminating the use of cash.
  2. E-wallet – A prepaid account that can store the financial information of a user such as debit or card to make online transactions.
  3. Smart Card – A chip card that has a microprocessor that can be filled with funds to make transactions.

2. Cash Payment System

The cash payment system has four (4) types:


  1. Direct Debit – An account holder gives an instruction to a bank to collect specific amount of money to successfully purchase a product or service.
  2. E-Check – A digital version of the traditional check, this allows a user to transfer money from a bank account digitally.
  3. E-Cash – A user may store a certain amount of money in a device and proceed to make online transactions.
  4. Stored-value Card – A card that has a specific amount of money that can be use to fulfill transaction (e.g. gift cards or cards utilized in riding trains).

The advantages of e-payment system

Here are the benefits of acquiring an e-payment system for a business:

  1. A merchant may be able to offer its products and services globally;
  2. It can create efficient transactions since it would only take seconds for a customer to purchase anything.
  3. It provides convenience since a customer may buy anywhere and anytime he or she desires.
  4. It is cost-effective since it’ll eliminate additional manpower and at the same time lower technology costs.
  5. Monitoring of customers’ expenses – it can serve as customers’ guide in knowing transaction history and current balance.
  6. Payment gateway providers offer their clients with secured and anti-fraud tools to make online payment transactions safe and reliable.

What are merchant accounts?

The so-called merchant account is a type of bank account that allows entrepreneurs to receive payment from a debit or credit card. This account is an understanding between the merchant, issuing bank, and the payment process on the settlement of credit or debit card transactions.

Thus, when a client pays for a service or product through his or her credit or debit card, the payment will be first received to the merchant’s account and then transferred to the business bank account. Of course, this type of account is ideal for merchants who desire to take their business to e-commerce platform and accept credit card payments online.

How to obtain a merchant account?

Opening an account requires assessment such as follows:

  1. Type of business – Issuing bank considers the risk of credit card fraud and returns;
  2. Years in business;
  3. History of business- Issuing bank will look for history that may revolve around bankruptcy, defaults, and the like;
  4. Background check if the business had merchant accounts in the past; and
  5. Credit history of the merchant.

What is an internet merchant account?

The internet merchant account is created to collect the credit card payments made online. Compared to merchant account, the fees for the internet merchant account is higher as it assumes the risks of online payments. The internet merchant accounts may be obtained from an issuing bank, which can be the same as to where you’ve opened a merchant account.

What are the fees in opening a merchant account?

Opening a merchant account may incur the following fees:

  1. Application fees
  2. Setup fees
  3. Monthly dues
  4. Discount (when available)
  5. Per-transaction dues
  6. Cross-boarder fees
  7. Rental fees

It’s ideal to do a canvass too see which banks offer the most competitive pricing when it comes to sustaining a merchant account. Always stay warry of any additional fees as contracts may incur penalties if you’ll not be able to meet its minium terms.



I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.






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