How to Choose the Best Merchant Accounts Provider

By Clinton Courier | September 19, 2022 |

One of the main factors determining any business’s success is the checkout/payment process. Whether a company has top-notch quality products or services, customers still want a seamless checkout process. This is where merchant accounts service providers come in.

A merchant service provider enables companies to accept online and in-person credit card purchases. With all the merchant service providers available today, finding the ideal one for one’s business can be challenging. Below are factors to consider when choosing the best merchant accounts service provider.

But first, it’s essential to understand the difference between merchant accounts and service providers.

What Is the Difference Between a Merchant Account And a Merchant Service Provider?

Merchant accounts are special bank accounts that sellers have dedicated to receiving credit card payments before being transferred to their normal accounts.

On the other hand, merchant service providers help sellers provide a seamless payment process for buyers paying using their credit cards. That said, here’s a brief explanation of how merchant service providers help businesses.

How Do Merchant Account Service Providers Help Businesses?

Merchant service providers help businesses process debit and credit card payments both online and in-person. They help companies in various areas of credit and debit card payments. Here’s a brief explanation of each area.

Credit Card Payment Processing

One area merchant service providers help businesses is credit card payment processing. For starters, they enable business owners to provide a stress-free payment process for buyers who use credit cards, which is the beginning of credit card payment processing.

Merchant service providers also help businesses verify credit card payments to avoid fraudulent activities. When looking for the best merchant services for your business, it’s essential to choose a provider that prioritizes secure payment processing and ensures customer trust and satisfaction. Even if your business operates in a niche market or deals with high-risk transactions, selecting a provider with robust security measures, such as fraud detection and encryption, is crucial to protect sensitive customer data.

Online Credit Card Payments

Another area merchant service providers help companies is online credit card payments. They facilitate secure online credit card payments. For starters, merchant service providers allow businesses to use an online payment portal, which credit card buyers will be directed to when they want to make their payments.

Merchant service providers allow businesses to utilize a payment gateway. A payment gateway is a technology that securely captures and relays a customer’s credit card information to the parties involved in credit card payment processing.

Point of Sale Systems

Merchant service providers also provide businesses with point of sale (POS) systems that they can swipe, insert, or tap their customers’ credit cards to initiate the payment processing procedure.

Merchant Accounts

Merchant service providers also provide and manage businesses’ merchant accounts. As mentioned earlier, merchant accounts are special bank accounts that accept credit card payments before they are transferred to the seller’s typical bank account.

Typically, there are two types of merchant accounts; dedicated and aggregated merchant accounts. A dedicated merchant account is created explicitly for one business. On the other hand, an aggregated account is created for several companies to use at a time.

That said, here are factors to consider when choosing a merchant service provider.

Pricing Packages

One of the main factors one needs to consider when choosing a merchant service provider is the pricing package. Business owners should choose a merchant service provider with various pricing packages suitable for seasonal/startups and large businesses.

It’s also recommendable for entrepreneurs to choose a merchant service provider who is clear about what services are included in each pricing package. That way, one can choose a package with the services they need.

Extra Charges

There are many additional fees merchant service providers charge businesses. From account cancellation fees, customer service fees, and maximum and minimum monthly volume charges, to mention a few.

These charges may also increase if one has a high-risk merchant service account. A high-risk merchant service account is a business with a higher risk of having chargebacks, refunds, and returns.

A high-risk merchant service account may be charged more fees because the high level of chargebacks means more work when it comes to merchant account processing.

Usually, all the information about the additional fees is included in the contract. So, it’s advisable for businesses to thoroughly go through it to know about all the extra costs the merchant account service provider is charging.

Customer Service

Another critical factor one needs to consider when choosing a merchant accounts service provider is customer service. With credit card payments, problems are bound to occur. So, a merchant accounts service provider must have a reliable customer service team to respond to customer queries and complaints.

Security

Business owners should also ensure that the merchant account service provider is PCI compliant. This means that the provider offers both physical and virtual security methods to ensure the entire payment processing is safe for both the business and the buyer.

Conclusion

Merchant accounts service providers significantly help businesses provide smooth payment processes for buyers who use credit and debit cards. However, business owners need to consider several factors when choosing one to ensure they find the right provider for their businesses.