When merchants set up recurring billing software, they must first establish certain accounts to ensure smooth online payment processing. Generally, these accounts consist of merchant accounts, payment processors, and gateway services. Merchant accounts are essentially the hub from which all transactions occur. It is a bank-like account that receives deposits from customer payments and allows you to view transaction history and analytics. After establishing the merchant account, you can connect it to your payment processor or gateway service. Payment processors allow merchants to accept credit cards and provide secure processing through encryption technology. They also act as a middleman between the merchant and their financial institution by verifying customer information and passing along transaction data securely. Payment processors charge fees for this service, so it’s important to research several companies before deciding on one for your business needs. Gateway services are web-based applications that allow merchants to link their website or mobile app directly with their payment processor to process eCommerce transactions quickly and securely. Gateways often offer fraud protection features such as address verification, real-time monitoring of suspicious transactions, and add-on features like subscription management tools or analytics dashboards. Gateway services typically have additional setup costs and monthly fees associated with them, so it is worthwhile to shop around before making any commitments.