The importance of merchant service providers (MSPs) to business owners can never be overemphasized. For continuing survival and success, businesses must be able to accept payments one way or the other and this is what MSPs do with https://thesoutherninstitute.com/cbd-merchant-services/.
Simply put, merchant services are an extensive range of financial services used by business ventures which may include Point of Sale (POS) platforms, gift cards, loyalty programs, digital financial transaction processing, automated clearing house, check guarantee services, and other kinds of payment services. In a nutshell, merchant services are payment processing systems which allow a business to receive payments via an encrypted and secure channel while using the client’s credit/debit card or any NFC/RFID-enabled gadget.
Major services rendered by a merchant service company include:
– Gathering necessary credit card and financial transaction information from a merchant.
– Receiving permission or denial for the particular transaction.
– Collecting funds from the payment card issuer.
– Sending funds to the appropriate merchant’s account minus interchange and required fees.
However, a merchant services provider does more than just receiving and making payment. In other to understand what they do better, we need to briefly go through a list of some important concepts as outlined below.
– Credit/Debit Cards
The best merchant payment systems use credit/debit cards and business owners are advised to take advantage of these popular payment channels. We don’t need to remind people that almost all financial transactions nowadays can be easily handled through payment cards.
-Point of Sale (POS) Terminals
These payment systems can not only handle payments but also use to manage a business financially.
-Digital Payment Services
Online payment services are modern payment systems increasingly becoming the standard for businesses and even government agencies all over the world. These simple payment platforms include simple integration options, digital gateways, electronic checks (eChecks), recurring billings, and shopping carts as seen on many merchant websites.
– Equipment Leasing
Some merchant service firms also provide affordable leasing services to help businesses accept payment cards quickly. Business owners can pay for the leased terminal on a monthly basis. You are free to manage your business effectively without bothering about large, upfront payments for a payment platform.
– Business Funding
These days, MSPs help businesses to receive loans, credit lines and cash advances to fund projects.
Apart from the financial services mentioned above, merchant service providers also help protect business ventures and customers from frauds. The major objective of these service providers is to secure your financial transactions through best practises which include:
. Fraud prevention.
. Data breach protection.
. Payment Card Industry (PCI)- compliance.
– Rewards programs and gift cards
Rewards programs and gift cards are sure ways to keep customers loyal, improve retail traffic, and increase profit margins. Many merchant service providers offer these value-added programs to help keep and grow your customers base.
The business is usually charged a certain percentage of the transaction called a “discount fee” each time a customer uses a payment card. The discount depends on the type of business, risk presented, payment platform (internet or retail), and whether a card is present or not.
In conclusion, with the terms explained above, business owners and customers must have been informed of what merchant services are and the importance of their providers in the business circle.