August 30th, 2005 by Jamie Estep
There are 2 options for a business when choosing to accept credit cards on the internet; a traditional merchant account, and 3rd party processing. 3rd party processors are companies like Paypal, 2Checkout.com, and Ikobo. Both, merchant service providers and 3rd party processors essentially provide the same service of enabling a business to accept credit cards.
The difference between the two business types is that third party processors process the transaction for your business under their own name, but with a merchant account, the transaction is processed under your businesses name. Visa and MasterCard both have strict policies against having another company process your transactions for you.