What are merchant services?
Merchant services are labeled as credit card processing. This refers to the electronic payment transactions handling. Generally, they are run from an account set up by a merchant to facilitate the credit card processing park city. A provider of merchant services actually simplifies the process of payment acceptance, thereby enables merchants to expand the options of payment, get quickly more money, and a few other benefits.
Merchant services park city is a broad category in the financial services that are mainly used in businesses. It is put to a most specific use such that the merchant processing services allow a business to accept payment transaction through encrypted, secure channel using the debit or credit card or some RFID/NFC enabled devices. Generally, the terms that include are:
- Debit and credit cards payment processing
- Loyalty and Gift card programs
- Check conversion and guarantee services
- Payment gateway
- Payment services, automated clearing house check drafting
- Merchant cash advances
- POS, the point of sale systems
- Online transaction processing
- Electronic benefits transfer programs
Typically, merchant service providers want a merchant to have a merchant account directly or through some referral partner, such as B2B service companies or banks.
In the mPOs systems, the entry devices are connected typically through Bluetooth to a mobile phone, and they then use the mobile data or Wi-Fi to connect the banks. However, this system does not need a merchant account as the companies provide this service type have with the acquirer a relationship. The payments cost is made more significantly through mPOS as it is suitable for businesses and so it is not done through card transactions. Usually, there is a charge to buy from the mPOS system provider the device.
Working of credit card processing
Accepting debit and credit cards is a complicated business and the working is:
- Customer gives a card at the merchant location
- The card information reaches the acquiring bank
- The card association sends to the issuing bank the transaction requesting approval
- The issuing bank sends a code as the response
- The card association sends to the acquiring bank the authorization code.
- The acquiring bank sends to the payment terminal the approval code, prints a receipt to sing
- The issuing bank bills charges for the period and it is paid by the customer using the card.