Explained Simply: What Is A Merchant Services Provider?

Posted by Brian Latch on December 3rd, 2021

If you are serious about starting a business or have already started one, accepting payments is a major part of surviving competitions. You cannot simply rely on cash payments if you want to continue making a profit. These days it is all about keeping up with the latest technology. One such thing you absolutely need to incorporate in your business model is the means to accept credit card and debit card payments. When you ask around about these things, you will come across a term merchant services provider.

Merchant services providers allow the merchant to accept credit card, debit card payments, along with alternative payment methods. Merchant services providers can be divided into various subtypes. And it is about time you familiarize yourself with them.

•  Merchant account provider
  An online merchant account provider can help you open a merchant account. This account is the place where all your credit card payments and debit card payments are deposited. Most other merchant account providers rely on one of these direct processors to process their merchants’ transactions.

•  Payment services provider
  Small businesses often refrain from opening merchant accounts due to the fees involved. However, they don’t need one and they can instead rely on payment services providers. These services allow you to not get into the cycle of account fees and lengthy contract terms that accompany a traditional merchant account.

• Payment gateway provider
  This is the newest kind of service provider. A payment gateway provider offers you a payment gateway, with which you can accept card payments. Some of the services offer you a merchant account to go with it, while some don’t.

This is just the tip of the iceberg when it comes to explaining merchant services providers. We hope this article has been a good place to start your learning process.