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Originally Posted by turbo Can someone please explain to me the difference between a merchant accont, and a payment processor?
Thanks | A merchant account is provided by a bank that contains the proceeds from credit card transactions.
The actual transaction is processed by a payment processor (commonly called a gateway) through the electronic payment network.
There are also third party processors (PayPal, CCNow, etc.). PayPal does not require you to have a merchant account. Essentially, you are using THEIR merchant account and gateway. So PayPal remains liable to the bank providing their merchant account for any losses, and you remain liable to PayPal.
Last edited by jeffweico; 08-04-2010 at 04:05 AM.
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