Merchant account providers allows businesses to accept credit and debit cards as payment for goods and services. Transactions can be done on the telephone, face-to-face or over the internet. Credit cards have become the most popular way of paying for goods and services in the market, thus, merchant account has become very vital for most businesses.
Visa and MasterCard networks facilitate electronic fund transfers all over the world and provides financial institutions with their branded payment products that can be used by financial institutions to offer debit, prepaid, credit and cash-access programs to their customers. These networks do not issue cards, extend credit or set the fees and rates for customers.
Historically, only member banks issued credit cards and provided processing services to merchants. But over time, banks discovered that these services were not within their skills to convince every merchant to accept credit cards. They started to outsource the selling of these services, as well as the processing of the transactions to Independent Sales Organizations.
While merchants continue to buy credit cards from banks, it is an ISO that is responsible for selling credit cards, processing the transaction, providing technical support, and submitting it to Visa or MasterCard networks.
Services offer by Merchant Account Providers
- Point of sale equipment rental – Point of sale terminals are adapted for credit or debit card transactions. These transactions are carried out behind a glass partition. POS equipment can be fixed, mobile, or portable. Portable and counter top POS terminals are commonly used by restaurants and retail shops. Mobile terminals are usually used by businesses that need to get payment within the premises of the customer.
- Purchase with cashback – Customers may request cash from the cash register along with the transaction, through a service known as cashback. Cash is debited from the customer’s account through an Electronic Fund Transfer at Point of Sale terminal. This type of service is most convenient to the customer. It also provides benefits to the business because it encourages customers to buy impulsively and increases the number of customers because if the convenience of cashback.
- eCommerce solutions – Businesses conducting online selling of goods and services require a secure way of conducting transactions for one end to the other. Customers can make payment by providing their card numbers.
- Anti-fraud measures – Merchant account providers provides services that minimize the risk of fraud for both the client and the client’s customers.
More info: Face-to-Face Transactions | Mobile Transaction | Online Transaction