Merchant Services: Frequently Asked Questions

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Merchant service

To run a prosperous business, it is important to get a partnership with an authentic Merchant Service Provider. The Merchant Service Provider connects your customers, business, and your banks. It helps to ensure that you are being paid and all your data is protected. When a user swipes the card at your business, it is the responsibility of the Merchant Provider to transfer funds to your account. So you have a clear understanding of Merchant Services. Here are some frequently asked questions about Merchant Services that will be advantageous for you.

1. What is a Merchant Account?

In this type of bank account, you can accept funds and payments through credit or debit cards. It is a kind of agreement that links your business and the bank with a payment processor in between. It allows taking payment after a card transaction.

2. How do I open my Merchant Account?

To create a merchant account, apply to the bank with your existing business account connected to your business federal tax ID. The business account and the merchant account will continue to be separated from one another. The merchant account will collect the payments or the credit card transactions, and then it will connect to your business account to deposit the money.

3. Which documents do I need to apply for?

  • Signer (person who wants to open the account), the driver’s license, ID card, and other government-issued documents.
  • You need a copy of the bank letter with your account number and company’s name, a sign of the officer, and an ABA bank number.
  • You should show the evidence of your marketing that may be a website or an advertisement.
  • Additional information about bank statements and financial records can be asked.

4. How secure does Merchant Services Provider offer the services?

Choose a Merchant Service Provider that cares a lot for your security and safety of your account. Merchant Service Provider like Emscorporate (EMS) is a Certified Level 1 PCI Service Provider for the last ten years. They really care about your business and transactions, so they offer services that are secure for your business.

5. What types of payments can I accept?

Studies have shown that if you propose multiple payment stations to your customers, there will be an equal increase in revenue generation. Giving customers the chance to use easy tools at checkout will help your business to grow beyond cash transactions offering more opportunities.

  • Mobile payments

Mobile payment is a mode of payment where you get the funds and payments for a service or a product through an electronic device like a tablet or mobile phone.

  • Contactless Payments

Several contactless payments are made with a credit card, smart cards, key fobs, smartphones, and electronic devices. They use radio frequency identification (RFID) for making payments that are secure and protected. Near-field communication such as Samsung pay, Apple Pay, or Google Pay can be used for this.

  • eCommerce Payments

Ecommerce is the process of buying and selling products online, i.e., the internet. This paying online is the latest trend due to its convenience for everyone. Online payments are thought to be more than around 700 billion in the coming years.

  • Virtual Terminal

It is a software application where merchants accept payments through a credit or debit card virtually, without a physical card.

  • Payments through ACH

ACH is an abbreviation of Automated Clearing House. This is the network that connects the electronic payments and money transfer between the banks without physical formalities like paper cheques, credit cards, or cash.

6. How to select the best Merchant Service Provider?

The decision to choose the best Merchant Service Provider for your business depends on two things. First, these are Merchant Service Provider suits best for your business and secondly, which payment tools provide a good experience for your customers.

The first point in choosing the provider must be how good the provider is connecting to other business tools. The Merchant Services Provider should not only aid in getting the payments faster and efficiently, but it should also give you access to the features that help you to see the growth of your business. The second point to keep in mind is the cost. All Service providers have a different fee for credit card processing. If a Merchant Service Provider offers simplified pricing, then go for that one. This will benefit you in a way that there will be no extra processing fees or taxes every month.

7. How do merchants typically get burned by their payment processing provider?

Some Merchant Services Provider imposes hidden charges. They may include:

  • Hidden fees
  • Lack of structured customer service.
  • Low level of safety and security.
  • Settlements that don’t adjust to your business.

Be careful when selecting the provider and do a lot of research. If you find something like this, go for someone else.

8. How long will it take to begin accepting card payments?

It depends on your business and how it is growing. From an authorized merchant account, it can take up to 48 hours. Some companies which are established may take 24-48 hours to set up a proper merchant account. If the account requires some physical device to establish, then 2-day shipping must be added to the total time.

9. How can the Merchant Service Provider help me compete with big companies?

They can help you compete not only with small businesses but large-scale businesses as well. They can give you access to tools that allow you to see your business beyond the payment process. They can assist in growing your brand by offering services like web design and hosting and gift and loyalty card programs.

10. Does the Merchant Services Provider help with funding?

Established companies can also help you with findings. Companies like EMS have a program called Bizzfunds. In this program, they can purchase an amount of future credit card sales to raise your investment. The good thing here is that instead of paying a fixed amount monthly, you can pay a percentage of your daily credit card sales until the money is fully paid back.

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