Earlier, life was much simpler and businesses required very small financial transactions to be made. All transactions were recorded on paper and payment was made on the basis of this. Businesses could also extend credit without the fear of financial loss. Now, the scenario is totally different. Businesses have to keep a close watch on every financial transaction being made. Further, the method used for making transactions has changed now. Businesses have started using cheap and time effective methods for making transaction. Merchant services are just such method that have aided in making the transactions of businesses easier and quicker.
Merchant services are the term given to financial services designed for the use of businesses. It encompasses the management of electronic payment for businesses. These electronic transactions include acquiring sales details from merchants, getting sanction for the transactions, collecting funds from the bank from which the credit card was issued, and transferring payment to the merchants. Lexington’s IT support also provides merchant service. merchant services include receiving a payment via a secure channel.
The term merchant services entail the following.
-Processing of credit cards and debit cards payment – This involves the collection and the entry of payment details into a payment system, authentication of the card, checking of the cardholder’s identity and account balance and the settlement of funds.
-Conversion of check and check guarantee – It is a service that converts paper checks into electronic payments at the point of sale and crediting cash directly into bank account of the merchant. It also encompasses giving full guarantee to the amount in a check.
-Check drafting and payments via automated clearing house- It is an electronic network that assists in financial transactions, such as check drafting and payments.
-Loyalty programs and issue of gift cards -Loyalty programs are rewards program offered by businesses to their customers who make regular purchases. It can be in the form of a special sales coupon, free good, or access to new arrivals. A gift card, on the other hand, is a card that is of restricted monetary value issued by banks and retailers and can be redeemed at different establishments.
-Payment gateway – It is an e-commerce service provider that sanctions credit card payments for online retailers, e-business, etc. Payment gateway involves encrypting sensitive credit card details so that the information is securely transmitted from customer to merchant.
-Online transaction processing -It is a method of processing that involves short transactions recording business proceedings. Online transaction processing requires high accessibility and consistent response time that is short. It is used for businesses where a huge number of customer transactions are involved.
-Merchant cash advance – It is a variety of financing options for small businesses that is classified by short payment terms and small regular payments, as contrasted to longer payment terms and larger monthly payments. Merchant cash advance offers finances to businesses in exchange for a percentage of the businesses’every day credit card income, straight from the processor that settles the card payments.
-Point of sale systems- It is used for the hardware and software placed at checkouts in a retail shop or store, or a location where such type of transactions take place. In fact, point of sale system can be used at anyplace where something is exchanged for money.
-Electronic benefits transfer programs- It is a program that assists state governments to offer and track benefits to authorized recipients through the use of a plastic debit card. Some of the reimbursements provided through electronic benefits transfer programs are cash benefits and food stamps.