In today’s world of fast-paced and high-tech business, it is important that one is able to keep up with the pace. There are many systems and services that a business can pick up to maintain a level of service that can be considered high quality. One of these many services is the use of merchant services.
What are merchant services?
Merchant services are the term used for a broad category of financial services intended for businesses. It usually refers to the service that enables a business to accept a transaction payment by using the customer’s credit or debit card.
Merchant services pertains to several specific business services including credit card services like credit and debit card payment processing, payment gateway, direct mail marketing and merchant cash advances, to name a few.
What is a merchant account?
On the other hand, a merchant account is a contract wherein an acquiring bank extends a line of credit to a merchant or a business that wishes to accept payment card transactions from a specific card association brand. With this contract, a business or merchant cannot directly accept any payments from any of the major credit card brands.
Common methods of processing credit cards
There are many different ways a merchant can process credit cards. One of these methods is the use of a credit card terminal. A credit card terminal is a stand-alone electronic equipment that allows a merchant to swipe or key-enter credit card information required to process a credit card transaction.
Another method is the ARU or the Automated Response Unit. Also known as a voice authorization, capture and deposit system, the ARU allows the manual keyed entry and authorization of a credit card over a mobile phone or landline telephone.
Advantages of using credit card services
There are many advantages a merchant has when using credit card services. One of the main advantages of having credit card services is that one is able to provide their clients with several payment forms. By accepting payment through credit card, merchants are able to widen their target audience.
By using credit card services, merchants have credit card processing that is a convenient and effective payment solution that helps businesses in improving their cash flow. Also, depending on the solution the merchant chooses, they are able to accept credit card payment through different channels. Credit card payment can be accepted through the phone, on the internet, wirelessly, by fax or in person.
What are small business loans?
Small business loans are business loans that pertain to a small loan for business purposes. A merchant service provider is able to assist a merchant with small business loans.
Small businesses may apply for business loans. However, unlike a regular business loan, small business loans oftentimes are granted not on the status of one’s business but on one’s personal financial status. Small business loans are often euphemisms used in the financial world as a personal loan given to small businesses.
There is no precise definition given for a small business loan.
