If you are thinking to add debit and credits as payment options or starting your new business, you will definitely come across various concepts and terms which you have never heard before. To get a clear understanding of the merchant service providers, you should first familiarize yourself with the merchant services concept. The terms explain various kinds of software and hardware products and services which permits merchants to process and accept debit or credit card transactions.
Merchant services comprised of countertop terminuses to enter card payments, handling services to accept the transaction and create merchant accounts to secure the money after the sales. At present, it is has become a complicated field. Ecommerce has opened up several chances for selling services and products remotely than just telephone and mail order.
Some of the software products like payment gateways permit clients to pay for the purchases instantly through the internet and online reporting and inventory management services offer the authority to track virtually all the aspects of your commerce on the computer.
Sometimes, merchant service providers are referred to as merchant account providers, processors or acquirers. At msbrokersolutions the word merchant service providers are utilized to cover all entities like merchant account providers, payment gateway providers, payment service providers and another kind of business which permits you to receive payment methods instead of paper checks or cash.
Merchant service providers and their types
All the merchant service providers would not provide the same features. However, the majority of the service providers fall under one of the various categories which helps in distinguishing them a bit from other competitors. Some of the common kinds include the following:
PSP or Payment services providers
Though it is a good option to have a merchant account, the smallest businesses do not absolutely have to accept debit and credit card payments. PSP or payment service providers can give such small businesses an ability to approve credit card payments without having a devoted merchant account. In this case, you would not have any exclusive merchant ID number and your account would be gathered with one of the merchants. In this arrangement, you can enjoy the advantage of practically eliminating the lengthy contract terms and account fees which mostly come with a customary merchant account. Payment service providers or PSPs remains as an excellent option for businesses which only process a limited amount in a month in debit or credit card transactions or function only on a seasonal basis.
One of the highly utilized merchant services providers is the merchant account providers. At a minimum, this entity can offer credit card processing services and a merchant account to make sure you get your money when the clients make the payment using debit or credit card. Though all the merchant account providers help in setting up a merchant account, some of the large companies provide processing services to progress your transactions via the credit card networks like American Express, Mastercard, Visa, etc. Such companies are termed as direct processors. Msbrokersolutions is one of the best examples of merchant account providers. You can depend on msbrokersolutions to process merchant’s transactions.
Payment gateway providers
Due to the development of eCommerce, the latest provider has landed on the scene that is payment gateway provider. A payment gateway is offered by these companies where you can accept online payments. But still, they may not or may offer a merchant account along with it. msbrokersolutions is one of the reputed and largest gateway providers in the industry. It provides an option between one of the merchant accounts or utilizes their payment gateway along with an existing merchant account.
Different kinds of merchant services
The majority of merchant services providers deliver a wide range of services and products to permit merchants to approve debit card and credit card payments and also manage the inventory and track various aspects of the business. As a merchant, your requirement will depend as per your type and nature of business. All businesses will require either payment service account or a merchant account. Therefore, other features will remain useful only for particular kinds of businesses. A payment gateway is not necessary when your business does not sell anything online. Some of the common kinds of merchant services are as follows:
Credit card terminals: The retail merchants require a hardware product which lets you read customer’s debit and credit cards and later transfer the details to the processing network of the provider. There are traditional countertop terminals that can be connected through a landline or internet connection. There are also wireless models but they are expensive and bulkier than the wired models. To function, it requires wireless data strategy. Terminals can be leased or purchased from the merchant service provider. As the majority of the providers support unique terminals, it is recommended to buy the terminal from the third party supplier or from the provider.
Terminals need a software load that must be installed prior to accepting transactions. Terminal leasing is not encouraged as it comes with the non-cancellable type of leases. Also, you have to pay several leases that cost more than the original price of the terminal.
Point of sale systems: It combines the roles of credit card terminal along with computer display. It helps to monitor your sales and manage inventory through the single equipment. Such systems come with dedicated fully featured terminals and software that functions on Android tablet or iPad. Several providers give optional accessories like check scanners, cash drawers and tablet mounts permitting to any kind of payment via a single device.
Payment gateway: It is a software which communicates between processing networks of the providers and your website. It permits to approve payments through the internet. As not all merchants require a gateway, service providers mostly charge a gateway fee on a monthly basis to access this payment gateway feature. Several gateways include assistance for recurring billing, client information management catalog and security features like tokenization or encryption to safeguard your client’s data.
To conclude, you may require specific merchant services according to your business nature and type. Businesses that are retail only would not require a payment gateway, however, they require consistent credit card terminals.
