Merchant services providers
The term ‘merchant service’ is simply a platform that helps business owners to operate and grow their businesses effectively. Merchant Service Providers facilitate credit or debit card payments for goods and services. These transactions can be facilitated on the phone, face-to-face, or even virtually over the Internet.
Having a merchant service provider for your business is quite relevant because as a merchant, you get to:
- Accept payments from your customers through credit cards, debit cards, and electronic payments.
- Securely manage PCI compliance when processing and storing payment information.
- Accept payments in different currencies.
- Easily manage your cash flow.
However, there are many misconceptions linked to merchant service providers. To give a few examples, most dealers believe that once they sign a contract with a merchant service provider, they can't back out. This is a huge myth. Merchant service providers are capable of buying out your contract, and in return, offer better equipment and better service.
Another quite common misconception is that all card transactions are similar. This isn't true. Some transactions tend to be more expensive than others. The cost difference varies depending on the transaction type.
Some dealers believe that merchant service providers aren't safe. Of course, we can't blame them, looking at the high level of frauds and data breaches. It is, however, essential to understand that fraud management for merchants isn't a hard nut to crack. With the right precautions, you can be able to protect both your businesses and your customers' data from fraud.
Working with the right merchant provider will help you distinguish between facts and myths. A good merchant service provider should be able to take time to educate you and help you understand how the platform works.
Below is a list of the most common types of merchant service providers available today.
Payment Services Providers– Most payment service providers, such as PayPal and Square, give users the ability to accept card payments without the need for a dedicated merchant account. The accounts are instead aggregated with those of other merchants.
Merchant Account Providers– Merchant account providers are the most common merchant service providers. They provide users with a merchant account and credit card processing services.
Payment Gateway Providers – Justlike payment service providers, payment gateways won't offer users a merchant account. Payment gateways are only suitable for e-commerce investors.
Types of Merchant Services
Point of Sale (POS) Systems – This system enables users to manage inventory and sales using a single computer.
Mobile Payment Systems (mPOS) – mPOS allows merchants to use smartphones as a credit card terminal.
E-Check (ACH) Processing – This software allows users to scan paper checks and confirm that payments have been made. The service protects merchants and their customers from fraud.
Payment Gateway – This is software that bridges communication between a merchant's website and their providers' processing networks to allow online payments.
Virtual Terminal – This software changes the user's computer into a credit card terminal. Virtual terminals are mostly used by businesses that don't have an e-commerce website. Therefore, they are mostly used by mail or telephone orders.
Online Shopping Carts – These carts are specifically designed for e-commerce merchants aiming to customize their website’s features.
