Tuesday, January 18th, 2022
As commerce continues to go digital, businesses must keep up with the latest trends if they wish to stay relevant to customer needs. In the past, it was enough to accept debit and credit cards, with cash really being the only other option. But the landscape has changed drastically over the past few years.
Now, businesses must consider mobile payment processing to ensure they have a wide variety of options that appeal to the latest customer payment trends. The more the world goes digital, the more important this has become. The last two years of uncertainty due to the pandemic has only increased the use of mobile processing and e-commerce shopping.
What is a Merchant Service Provider?
If you’re a new business owner or an aspiring entrepreneur, you might be unfamiliar with what a merchant service provider is and what role they play. Essentially, a merchant service provider allows you to accept card payments and maintain the security standards necessary to successfully process card payments.
Most merchant services today provide additional functions that help you accept your funds from your online shop and move them into your business’ merchant account. They will also provide a point of sale (POS) system. This helps your business track inventory, monitor sales, and collect critical data. Still, others add chargeback protection and prevention services to their list of benefits and features.
Here are a few of the types of service providers you will run into that your business will need to know to find the right fit and operate smoothly:
- Merchant account provider. The most popular providers, merchant account providers, focus on a few services like providing a merchant account and credit card processing functions. They are a good option for companies that need a straightforward and safe method of accepting online payments.
- Payment services provider. While a traditional merchant account provides fantastic services, it requires having a separate account for each payment method. Especially for seasonal businesses, a payment services provider might be a better option, since it provides great services with payment methods lumped into one large merchant account.
- Payment gateway provider. The difference between a merchant account and a payment gateway is often confusing for new merchants. Essentially, a payment gateway validates payment cards by collecting the data necessary for credit card processing and then transferring them to the acquirer.
The biggest thing to remember while comparing your options is that most merchant service providers offer a wide range of services. The key to finding the best merchant service provider is to choose one that understands your business type and industry has the features you need to operate smoothly and stay up to date with the latest consumer trends.