Everything You Need to Know About Merchant Services

Everything You Need to Know About Merchant Services

“Merchant services” is a general term that describes the financial payment services for businesses. These services include the ones used by businesses to accept and process credit card payments, also known as merchant processing. 

Merchant services also encompass all of the background processes businesses use to accept payments, the other companies involved that make this happen, and the hardware or software necessary to accept and process these payments. 

Credit Card Usage and Merchant Services

Most businesses understand that accepting cash or credit card payments is industry standard. Times have changed from when cash was the preferred currency method. Credit card-based transactions have grown increasingly popular in recent years. The COVID-19 pandemic has greatly encouraged the growth of contactless payments as well. 

Credit cards can be more convenient and secure as opposed to using cash. When you’re a financially stable company or government entity, credit cards will be a sensible and sought-after alternative to cash and a necessary tool for online transactions. If you want your business to be profitable, then accepting electronic payments can support that goal.

Merchant services can be extremely useful for business-to-business and business-to-government businesses. By switching over to advanced payment processing systems like those provided by Interchange Pros., companies will automatically submit additional transaction data that could save them money by lowering interchange fees.

The Function of Merchant Services

Businesses that have chosen to partner with Interchange Pros receive a secure payment processing program that is easy to integrate into their current accounting system. This program provides solutions for business to business payments and expenses that come along with these transactions.

Your merchant account will act as a go-between between your business bank account, the credit card networks, and your client’s card issuing bank. Without one, you aren’t able to accept credit cards and other electronic payments.

Merchant accounts differ from normal bank accounts. They serve as a holding account for transaction funds during the processing of payments. Merchant accounts are provided by different types of financial institutions. The terms governing these accounts can be adjusted to fit your business needs. 

Advantages for Businesses Using Merchant Services

All merchant service providers help businesses benefit from accepting credit card payments but some offer additional value to companies. Some added value concepts below may help your business operations to scale due to the following advantages:

Lower Your Interchange Rates

Business-to-business and business-to-government credit card processing fall into three different data levels: Level 1, Level 2, and Level 3. Each level requires a certain amount of information, or data, to qualify for that level and the more details that are given will qualify that transaction for a higher data level.  Then a lower interchange rate will be charged.

What you pay in fees depends on what you’ll be charged for Level I, Level II,  or Level III transactions by the credit card company.  Typically your interchange rates could drop from 3.5% or more to below 2% on transactions!

Seamless Integration

Merchant services can help businesses qualify for lower interchange rates that apply each time they process a business, corporate, or purchasing card. Interchange Pros can integrate directly into your business’s software system, and you may not have to change your sales process at all. 

Interchange Pros can provide seamless all-in-one solutions that make integrating your new merchant account simple and easy. Your business will have more flexibility because you’ll be able to handle multiple avenues of payments without having to collaborate with separate processors. 

Make Your Business More Efficient

Efficient payment processing can make it easier for businesses to process their card-not-present, business-to-business, and business-to-government transactions. Merchant services ensure that it’s possible to use a single payment solution through multiple revenue channels for your business. 

By choosing an integrated payment solution that offers multi-channel payment support, you’ll be able to cut costs. Your business can save by limiting what you have to pay in transaction fees or subscription costs to various providers.

Another way you’ll be able to make your business more efficient is through your employees’ work schedules.  Businesses with integrated merchant services can reassign staff to tasks that are more fitting for your business’ needs. Integrating Merchant services can provide opportunities for your business to streamline processes.  Getting the most out of your workforce investment will make space for operations improvements. 

How can I set up merchant services for my business?

Setting up a merchant account is very easy. First, you’ll need to decide what type of payments your business will need to accept. This information will allow you to focus on accounts that fit your needs. 

Next, you’ll want to research the types of merchant accounts for businesses like yours. Once you have an account in mind, you can apply with them. If they accept you, you’ll enter into contract negotiations and sign with them. 

Interchange Pros is a Better Business Bureau A+ rated company providing innovative payment solutions to a wide range of industries. These systems are designed to improve cash flow, reduce credit card transaction complexity, and optimize interchange rates. 

Consider partnering with Interchange Pros because of their experience serving small, midsize, and large B2B businesses, government agencies, and municipalities.