Few things can impact your business quite like being able to accept all forms of payment. It’s not something that many new business owners think about at first, but when you consider that more people than ever before are paying with their credit or debit cards instead of with cash, it becomes clear that you simply can’t ignore those types of payments – if you do, you’re essentially missing out on countless potential sales.
That’s where merchant services come into play. By forming an alliance with a good, trustworthy merchant services provider, you can give your business more potential and a better future.
What Are Merchant Services?
Essentially, merchant services are one aspect of credit card processing. While you’ll need the hardware and software set up to accept debit and credit card transactions, the merchant services provider is what runs in the background. They handle three main things:
• Authorization – When the card is swiped, the merchant service provider reads the data and then checks to ensure that there are adequate funds available in the customer’s account. If there are, the payment is authorized and you’ll be able to make the transaction.
• Fund Collection – The merchant services provider issues a request for funds and collects the funds from the customer’s account, placing it into their own temporary account.
• Payment to The Merchant – Finally, those funds are issued to you. Merchant services providers will deduct a small fee from every transaction, and deposit the remainder into your account with them for access.
These simple steps are the backbone of accepting merchant services, and no matter what provider you choose to use, you can expect the process to be the same. It’s important to note that the overall costs may vary greatly. Merchant service providers will charge a small fee on each transaction, and each provider may have a different charge. Additionally, you may have to pay a monthly fee with some providers or even meet a monthly minimum amount of sales in order to avoid additional fees. Compare prices to ensure that you find the right provider.
The Importance of Merchant Services
Simply put, being able to accept credit, debit, and even mobile payments is a must in today’s world. Customers are increasingly relying on alternative means of payment, which means that you have to be ready to provide it to them.
Add to that the fact that things like online payments or mobile payments are impossible without good merchant services, and it’s clear that this is one aspect of your business that you simply can’t ignore.