Companies that provide payment processing services and products to businesses are generally known as merchant services providers. Such service providers focus on helping businesses of all sizes streamline the payment acceptance process. After all, no business can survive without collecting payments and fees from its customers and clients.
Understanding Merchant Service Providers
Many new business leaders and entrepreneurs struggle to understand what merchant service providers actually do. Put simply, such companies facilitate payment processing. They don’t act as banks or as credit card guarantors. They provide the equipment and software necessary for merchants to accept credit card and debit card payments. Merchant service companies may also interact with customers whose transactions have been declined. Merchant service providers provide businesses with a way to take care of all their transactions in one payment gateway.
Business executives who are shopping for a merchant services company are likely to run into a variety of salespeople peddling payment processing products. Depending on the size and nature of the business, salespeople may encourage business owners to use credit card terminals or simple software to process payments. Choice Merchant Services have worked hard to keep up with changes in technology. Such companies can now provide a wide range of services, including accepting wireless and online payments.
What Businesses Use Merchant Services?
Entrepreneurs may not be sure if it’s really necessary to accept credit cards. After all, don’t most customers use cash when purchasing products? A recent consumer study indicates that 53 percent of all purchases are made using a credit or debit card. Plastic payment has eclipsed hard, cold cash in the wallets of consumers.
Businesses in almost every industry accept payments via credit card and debit card. Businesses that accept such payments generally contract with merchant services companies. Merchant services companies assess a small surcharge on each processed transaction. For this reason, many business leaders choose to set a minimum purchase amount for customers using credit cards or debit cards.
Home-based businesses are also adopting merchant services. Individuals who sell goods online generally don’t want to wait for checks to clear the bank. By accepting credit card payments, they are able to build successful home businesses and increase their customer base. Many small business owners use merchant services companies because it takes the guesswork out of accepting payments.
Some merchant services providers offer software and programs tailored for specific industries. The needs of a restaurant and the needs of a gas station aren’t the same. Specialized services are useful to merchants. Paying for such services generally makes good business sense. Payment processing systems can even be hooked into accounting software, helping business leaders avoid accounting errors.
Merchant service providers are also valuable to business owners because they instill customer confidence. Most consumers are hesitant to simply give their credit card numbers and expiration dates to merchants through an email or simple form. Consumers want the assurance that their information will be protected and that transactions will be completed honestly and fairly. They get this assurance when they recognize a credit card terminal or secure online transaction interface.
1 Comment