The Benefits of Card Payments
- Customers are free to pay the way they want.
- You do not lose out on a sale just because your customer did not have enough cash.
- Impulse buys are supported by credit and debit card payments, which is good for your business.
- Customers spend more when they are not restricted by the amount of cash they have; this increases your business sales and drives up profit.
- Electronic payments shorten the speed of checkout as there will be no change-counting or check-signing at the counter.
- Handling lesser volumes of cash increases efficiency of managing money at the counter and decreases the risk of thefts.
Merchant Services or Credit Card Processing is a term that refers to a broad spectrum of financial services used by business in the United States. More specifically, merchant services allows merchants (businessmen) to handle electronic payments by accepting credit and debit card payments for their products and services.
Merchant Services include the following useful functions:
- Processing credit and debit card payments
- Accepting gift cards through loyalty programs
- Allowing online and mobile monetary transactions
- Merchant cash advances
- Payment gateways
- Point of sale systems
- Electronic benefits transfer programs
- Check conversion and check guarantee services
Some of the most common activities involve:
- Acquiring information about sales from the merchant
- Receiving an authorization for credit and debit card transactions
- Collecting funds on behalf of the merchant from the bank or financial institution which issued the credit or debit card to the customer
- Depositing the payment into the merchant’s account.
In order to avail of merchant processing solutions, a business owner is required to set up an account. The bank or financial institution with which a merchant sets up his / her account is the merchant service provider. Your service provider will perform all the roles and tasks related to processing.
Just like you analyze the nature of services and cost efficiency being provided to you by any service you avail of, you apply a similar approach while hiring a credit card processing service provider. You need to take into account the services being provided to you, whether you are given an option to accept online and mobile transactions, how much you will be charged to maintain the account, whether there are any hidden costs or any fine print in the contract that you should be aware of.