The relationship between a business and their Merchant Services Provider is a crucial relationship (and probably the most important relationship a business will have) that is essential for companies of all sizes to process their payments and provide a comprehensive suite of virtual services they can benefit from.
Firstly, a Merchant is a business that sells products or services. eCommerce merchants sell exclusively via the internet. Different types of merchants can further be broken down into several specific categories: Wholesale Merchants, Affiliate Merchants, Retail Merchants, and the eCommerce Merchants we mentioned. Due to the nature of these businesses, merchants need the ability to accept credit card payments from their clients; whether it be online, in-person, or via the phone.
Merchant Services Providers take care of their payment processing needs to help these businesses run smoothly; facilitating the processing of credit cards and other services which include the ability to accept payments from customers via credit, debit, and other electronic payments. Merchant Services Providers can also provide the technology and data analytics to track payments and collect on outstanding invoices. They offer security features so that processing and storing payment information is safe and protected from hackers or malware.
Merchant Services Providers serve as the intermediary between banks, your business, and your customers. This allows you to securely accept your customers’ payments- directly arriving to your bank account. When a customer swipes their card, the Merchant Services Provider’s function is to move the customer’s funds to your bank account- typically arriving within a window of 48 hours. Some businesses that are established can even qualify for next-day funding and receive their money faster.
Furthermore, businesses can rent or purchase credit card terminals and mobile swipers from their Merchant Services Provider. For online eCommerce businesses, easy integration of payment systems like virtual terminals (see below) allow them to accept payments online or over the phone.
Merchant Services Products are the many different tools available for payment processing that are offered by Merchant Service Providers. These include the following:
Virtual Terminals- a software application which allows merchants to accept payments with a payment card, specifically a credit card, without requiring the physical presence of the card. Think ordering online; like when you purchase products on Amazon.
POS (Point of Sale) Systems- where your customer makes an in-person payment for products or services at your physical (not online) store.
Mobile Payments– payment made through an electronic device- such as a smartphone or tablet. Mobile payment technology can also be used to transfer funds to family members or friends (think Paypal).
Credit card terminals- also referred to as an Electronic Data Capture Terminal, or EDC Terminal- is an electronic device that enables merchants to accept credit cards allowing customers to swipe, dip, or tap their credit or debit card- without having to enter their pin number and other information.
Payment Gateways– software that works in tandem with your eCommerce website and allows you to process secure credit card payments online. The payment gateway serves in lieu of a standard credit card terminal.
For more information: https://www.shopkeep.com/blog/how-merchant-services-work
Ask the team at Apaylo how we can offer your business a comprehensive, fully integrated Merchant Services Account with the payment processing methods that will help you get paid faster- specifically tailored to your individual needs! www.apaylo.com/plans
