Merchant services is a term used to describe the processing of credit and debit cards. It’s not about becoming a merchant, but rather accepting card payments.
We will use paying for something with your credit card as an example, please keep that in mind as we explain what merchant processing entails: When you pay with your credit or debit card, there are two parties involved. One party being the merchant, which is usually a company or business that accepts credit card payments in exchange for goods or services.
The other party is the Issuer who issued your credit card. When you pay for something with your credit card, the merchant will transfer funds from your designated bank account to theirs. This is where merchant services come into play- the merchant’s bank will actually process the payment and ensure that everything goes through smoothly.
There are a few different types of merchant services:
• Card Present: When a customer hands their credit or debit card to the merchant to complete a purchase.
• Card Not Present: When a customer is not physically handing their credit or debit card to the merchant, such as online transactions.
• In store: These are highly preferred by some customers because it provides a great deal of convenience for them. Merchants that offer this type of payment typically have a mobile device attached to an existing Point of Sale system. This will allow customers to checkout and pay with their credit or debit card on the spot, making it incredibly quick and easy.
• Ecommerce: This represents transactions that happen through electronic devices such as computers and smartphones. Merchant services for e-commerce is often more complex than other types because it requires more technological resources to process these payments securely.
How does merchant services work?
Merchant services allows businesses and other entities to accept debit and credit card payments for their products or services. All merchants, small or large, can benefit from merchant services. Whether you run a startup business just getting off the ground, or you’re an established company that has been around for decades- it pays to have merchant services in order to accept payments from customers.
There are a few different types of merchant services that we mentioned earlier. The most common type is card present, which is when the customer hands their card to the merchant in order to make the purchase. However, there are also other types such as card not present and ecommerce. Card not present is usually associated with online transactions, and ecommerce deals with transactions that take place on electronic devices such as computers or smartphones.
Merchant services is usually provided by the issuer of the credit card, who makes sure that everything goes smoothly throughout the transaction and sends money to your designated bank account afterwards. Merchant services vary in price depending on type and other factors.
Why does your business need merchant services?
Accepting credit cards can be a very valuable asset for any size of business, which is why it’s highly recommended that you take advantage of the benefits associated with accepting debit and credit card payments for your products or services. If you already have an online store, then this is especially beneficial for you because it allows your business to gain more exposure. According to studies, there has been a significant increase in the number of online transactions taking place around the world every single year- and this trend is expected to keep growing over time.
When customers are at your store, you can expand your customer base by allowing other individuals that are not carrying cash to be able to purchase items. This is a huge benefit for small businesses because it can help them to increase their sales and profits. Not only that, but merchant services can also help your business by improving efficiency and productivity. It’s been shown that when businesses accept credit cards, they’re able to process payments faster which means that they can get their products or services to their customers quicker.