subject: Merchant Services and its Types [print this page] Merchant Services and its Types Merchant Services and its Types
Merchant services refer to set of a tool that is required for the merchants to carry out their sales and payment in various new channels. It can be either accepting the payment through credit card online or offline. But the most common merchant service is in the online credit card payments. When a merchant runs an online business or offline and accepts the credit card payments as a mode of payments then he requires the merchant services to process the payments. If the merchant does not accept credit card payments then it will be a handicap for his business as more and more customers prefer this mode of payment to cash.
Many of the small business cannot afford to open a merchant account because of the stringent rules and regulations. It also attracts high fees and other charges. Under such circumstances the merchant services provider company will also act as the third party processor. This will happen mainly in case of small business and for those who do low volume of business. Only when large volume of business is done the fees paid can be justified. Similarly due to the risky nature of business getting a merchant account will become almost impossible then in such cases they can go for third party processor. Under such circumstances the term merchant services is used in the broader sense and will include all these services as a third party processor.
The term merchant services also cover the offline payments. The merchant service provider will be well established and reputed company and so the processor is connected to the bank directly for the retailer merchant. In some cases the cash back benefit is given to the retailer wherein this amount will be taken as purchase amount.
There are some banks who undertake to provide merchant services to the merchants. To find out the banks you need to search in the internet. Most of the banks don't provide this service directly but instead they outsource it to third parties for such service. Another option that is available for the merchants are the registered credit card brokers. They don't provide merchant services directly but just like the banks outsource it to third parties. They are a little higher in the fees and charges. Moreover there are no strict regulations for this type of organization and as a result your investment may not be in safe hands.
If you are into international business the best option will be international merchant account. But such companies are not regulated so conduct a thorough research before opting for this merchant service. The best option will be a well established credit card companies which are much more regularized. Moreover they will enable you to accept all kinds of credit cards payments.
There are various merchant service provider understanding them and opting for the best is very important to gain the benefits of accepting credit card payments.
