What Is Merchant Services – What Does it Include?

What is merchant services?

It refers to the financial services that are designed for businesses to use. It includes electronic payment management for businesses. Such types of electronic transactions comprise getting sales information from merchants, having transactions sanctioned, gathering funds from the bank that issued the credit cards, and payments transfer to merchants. These services also include getting payments through a safe channel.

Merchant services comprise of the following:

Merchant cash advance 

This includes varied financing options for small-sized businesses, categorized by small payments on a regular basis and short payment terms, as opposed to larger monthly payments and longer payment terms. Finances are offered to businesses by Merchant cash advance in return for a part of the daily credit card income of the business, directly from the processor which manages to deal with the card payments. 

Electronic Benefits Transfer Programs

These are programs that help state governments extend benefits to authorized recipients via a plastic debit card, and track the same. Food stamps and cash benefits are a few of the reimbursements offered via electronic benefits transfer programs. 

Point of sale systems

These are used for the software and hardware put at checkouts in a store or retail shop, or even at someplace where these transactions occur. POS systems may be used anywhere there is an exchange of anything for money. 

Payment gateway

This is an e-commerce service provider allowing payments via credit cards to e-businesses, online retailers, etc. It includes the encryption of sensitive details on credit cards, so as to ensure secure transmission of the information to the merchant from customers. 

Online transaction processing

This is a processing technique that includes business proceedings recording small transactions. The processing of online transactions needs consistently short response time and high accessibility. This is used for all those businesses that include many customer transactions. 

Debit / credit card payment processing

It includes collecting and entering the details of payment into a payment system, settling funds, checking the identity of the cardholder, authenticating the card, etc. 

Check conversion and check guarantee

This is a service transforming paper-based checks to electronic payments during the time of sales, and direct crediting of money into the merchant’s bank account. This also includes offering a full guarantee to the check amount. 

Using ACH to check drafting and payments 

ACH or Automated Clearing House is an electronic network that helps in financial transactions like payments and the drafting of checks. 

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