merchant and payment gateway?

i dont know if this is the right forum but glad i ask!

you see im planning to purchase a web host and a credit card payment processor.

im a student and my thesis is all about an online ordering system, and this invovles credit card transactions right?

i still dont understand what a merchant account or payment gateway is!!! grrrr

help me to understand the process of having a e-commerce business.

i stumble into this site 2checkout.com seems like its cheap glad it is!!! what do you think about this site??

please help!!! ASAP!

I've never used that particular one, but I know people who have. I haven't heard any complaints about it.

I personally have used CCNow and Paypal with no complaints.

I hope this helps.

Hi:
A merchant account allows you to charge people credit card and checks. A payment gateway is the tools(hardware/software) to process this information. Normally, get authorization when a person tries to buy something. For retail stores, it involves an actual machine and a phone line. For online transaction, the payment gateway is just software. When you submit your CC info online, your computer talks with the merchant server to make sure your credit card information is valid, so online stores can get the approval they need to ship/deliver your product/service.

-Charlie

I didnt expect someone would still reply to my post a hundred years ago, but hey whats a forum for?

I already subscribe to 2checkout.com and were doing great. They just have this new policies in which you have to comply to, whether you like it or not.

Yep the reply is late to this thread but I hope this thread might help to few other ppl who are looking for similar solution. BTW it depends upon your physical location and the amount you are usually going to process, One can look for Paypal or 2CO if you're buisness is focusing on US customers as those are very popular their and it covers well. If your intended market is in Europe you can either going to prefer worldpay or chronopay. Further you have to check has their customer support been nice ?
Has it been more than acceptable as per your requirement ? Are they allows your business to accept most of the credit cards ?