Merchant services, also called credit card processing or payment gateway services, is a service offered by many businesses to accept payments from customers. In this case clients making purchases with their cards. The business offers the facilities of card reading terminals where customers swipe their credit/debit cards and make payments in cash or through other means such as bank accounts or PayPal accounts.
The following are the types of Merchant Accounts offered by most service providers:
Standard Merchant Account – This is a merchant account designed for small businesses without any substantial credit history or outstanding liabilities. The transactions with Standard Merchants are commonly limited to no more than $4,000 per month with 4-10% transaction fees as well as terminal rental fees of $45-60/month. Although this is the most common type of merchant account, it is not the best option for companies with high transactions volume and credit risks.
Mid/High Risk Merchant Account – These types of merchant accounts are designed for businesses that have a higher risk profile such as internet merchants selling products and services with higher chargeback rates and companies selling products such as pharmaceuticals, adult entertainment etc. Mid/High Risk Merchants are subject to a more stringent application process and must apply at banks that offer this type of merchant account.
Premium Merchant Account – A premium merchant account is ideal for large corporations which sell expensive products and services with very low risk of chargebacks. Premium merchant accounts provide access to the largest credit card processing networks in the world for both internet and direct phone order merchants. These types of accounts normally require a substantial initial deposit from the merchant, but don't carry any monthly rental fees or per-transaction fees for swiped transactions.
Mobile Merchant Account – The mobile credit card processing services are designed for merchants who run mobile businesses such as selling products or services through smartphones or tablets.
Virtual Terminal – Virtual terminals allow companies to process transactions online using a virtual terminal instead of a physical credit card reader/terminal. The virtual cards can be offered by most merchant accounts providers and they do not charge transaction fees which make them very appealing to small businesses.
Chargeback management – This is a service designed for merchants who experience high chargeback rates or are experiencing significant losses due to fraud. The chargeback management service helps the merchant reduce their overall fraud loss through constant monitoring of transactions, faster response time to complaints and by reversing fraudulent charges automatically.
POS (point of sales) – This is a complete system that allows merchants to accept credit card payments and manage them through their computer systems. The POS system normally includes a software package for the merchant, a physical payment device and credit card reader as well as other features such as inventory management and electronic receipts.
As you can see there are many different services that a provider can offer. The best option for your business depends on your unique needs and characteristics. By having all the necessary information about these types of services you will be able to select the right one for your business.
