Merchant services is actually a pretty simple concept allowing merchants to process transactions digitally. In practice however, complex security needs and seemingly needless over-complications often caused by third-party “comparison” sites make the whole prospect a source of confusion for many businesses.
On a very basic level merchant services need a business bank account, a merchant service provider and the technology for the type of payments required. The majority of merchant service providers require a merchant bank account, an example of a merchant service provider that doesn’t require a merchant bank account is Paypal, but transaction fees are higher. Merchant service providers sit between the retailer’s bank and the customer’s bank and act to move funds from customer account to that of the retailer. At one time this was often provided by the retailer’s bank but today third-party merchant service providers are the norm.
To add a further level of confusion to the mix another third-party industry has grown up around the merchant service industry in the form of “merchant services comparison” sites that could act as funnels for one of the big name providers or banks while offering “impartial” advice on merchant services. A truly independent merchant services advisor can be a winning asset when seeking merchant services, one of the rebels who aren’t affiliated to any, one merchant services provider as they can negotiate the best deals on merchant services for you, through experience and unbiased merchant services comparisons.