If you're in the business of selling merchant services, you know that it's a competitive industry. You also know that there's a lot of money to be made in selling merchant services, which is why it's important to stay up-to-date on the latest industry news and trends.
In this article, we'll give you an overview of everything you need to know about selling merchant services. We'll start by discussing the basics of merchant services and how they work. Then, we'll dive into the different types of merchant services that are available, as well as the benefits and drawbacks of each type.
We'll also provide some tips on how to successfully sell merchant services, so you can make the most of your career in this exciting industry.
So, what are merchant services? Merchant services are essentially payment processing services that allow businesses to accept credit and debit cards as payment for goods and services. Merchant service providers (MSPs) offer these services to businesses of all sizes, from small mom-and-pop shops to large corporations.
There are a few different types of merchant services, but the most common are credit card processing, debit card processing, and ACH (automated clearing house) transactions. Each type of merchant service has its own set of benefits and drawbacks, which we'll discuss in more detail below.
Credit card processing is the most popular type of merchant service, and for good reason. Credit card processing allows businesses to accept credit cards as payment, which is convenient for customers and helps businesses boost sales.
However, credit card processing also comes with a few drawbacks. For one, it can be expensive; businesses typically have to pay a percentage of each sale (known as a "transaction fee") to the credit card processor. Additionally, credit card processing can be slow, particularly if the business is processing a large number of transactions.
Debit card processing is similar to credit card processing, but it allows customers to pay with debit cards instead of credit cards. Debit card processing is often cheaper than credit card processing, but it can also be slower.
ACH transactions are another type of merchant service that businesses can use to accept payments. ACH transactions are processed through the automated clearing house network, which is a network of banks and other financial institutions.
ACH transactions are typically cheaper and faster than credit card or debit card transactions, but they can only be processed if the customer's bank account is located in the United States.
Now that you know the basics of merchant services, let's take a look at the different types of merchant service providers. The three main types of MSPs are banks, independent sales organizations (ISOs), and third-party processors (TPPs).
Banks are the most common type of MSP, and they typically offer a full suite of merchant services, including credit card processing, debit card processing, and ACH transactions. Banks typically charge higher fees than ISOs or TPPs, but they also offer more comprehensive services.
ISOs are independent companies that resell merchant services from banks or other MSPs. ISOs typically offer lower fees than banks, but they may not offer the same range of services.
