Checks and cash are becoming continually lesser with your customers. On the other hand, online payments and payments through credit and debit cards are gaining popularity. There is a need for businesses to have a merchant account to accept the payments in multiple ways. It helps to open to more opportunities and adds value to the company in many ways. The merchant services provider is a must to process the card or online payment.
How do merchant services help a merchant?
A merchant services provider is a partner helping to operate and grow the business. They assist in processing credit cards and provide important services to the business. Merchant services provider offers essential services, and it includes:
- Accepting payments through debit, credit, and electronic payments from customers, allowing seamless transactions.
- Providing business with technology to understand business data, track payments, collect outstanding invoices and data.
- Securely making the storing and processing of PCI compliant payment information, thereby assuring data safety for customers.
How to open a merchant service account?
Merchant services establish companies to provide individuals and businesses with requirements and tools to accept debit cards, credit cards, and other electronic payment forms for transactions.
There are thousands of online merchant services in the U.S. They include PayPal, Stripe, Square, and Fattmerchant, the third-party merchant service providers to the bank–operated merchant services (Chase Bank, Wells Fargo, and Bank of America). Each company has its services, tools, and fees. Thus, relying on the business size, a model becomes expensive or affordable.
A merchant services account institutes a relationship between a business and a merchant services provider. It provides businesses to accept contactless payments such as eCommerce transactions, Apple Pay, and more, besides accepting credit and debit cards. Some processing companies for payment do not ask for merchant services to do business. However, it is risky not to have a merchant services account. Payment processing providers not asking for merchant account offer high risk merchant services.
What to look for in a merchant services provider?
While considering a merchant services provider, ensure to pay attention to their costs. It relies on the solutions you require. Thus, you may look for an online merchant services provider who will not compel you into paying the following charges:
- Equipment fee
- Setup fee
- Transaction fee
- Service or monthly fee
- Credit card processor fee
The payment processing fees include:
The merchant services provider offering payment processing should be suitable for startups with low volume sales. It should be appropriate for Small Business Merchant Services by providing a flat rate depending on processing payments as a fixed percentage. The pricing model should be easy to set up and quick, offering the best convenience of use.
Direct interchange: It is a fee where the merchant will ask for a monthly fee, and there is no percentage rate. It is not the best choice for small businesses or startups generating low sales volume.
Interchange-plus: Interchange fee works suitably for credit card transactions. However, MasterCard and Visa are credit card issuers, and they charge specific interchange rates. It varies with each type of card, whether it is a card-present transaction or CNP.
Tiered rates: Tiered rates are in varying structures such as MasterCard, Visa, Discover, etc. These are not suitable for small or medium-sized businesses. It is because the fees keep fluctuating, and it is not ideal for B2C transactions.
Though there are payment processing fees, keep a watch for additional fees such as minimum processing fee, account fees, account setup fee, chargeback fees, PCI-compliance fee, cancellation fee, statement fee, and NSF fee.
Who is the best Merchant Services provider?
Improving your business operations implies any earning counts. It is the reason you must look for the best merchant services provider. It is vital for your business if you wish to grow and serve the target market. Keeping in place the merchant services needs you to consider choosing the appropriate payment processing platforms. There are more than 1000 payment processing companies in the USA.
With the economy facing all the changes, it must provide an array of payment options. The solutions for payment processing include a virtual terminal, mobile payments, and contactless or touch-free payment solutions. These are to expand the business, generate more revenue opportunities, and give your customers a more seamless experience.
Moreover, any genuine Merchant Services Provider maintains PCI compliance on your business payment end. It entails tokenizing payment information and safeguarding your business by putting in place fraud prevention measures.