You've started your business. You have a business plan and your goals are set. Your office space has been secured and you've hired an assistant. You're ready to begin selling your product. But wait! There's something missing. You need a way to accept payments. In today's market, "plastic" is the accepted (and most common) form of payment. But where do you begin? That's where merchant services comes in. Merchant services is a type of bank account allowing your business to accept payments either by debit card or credit card. It serves as an "agreement" between your business, a merchant bank and a payment processor for the acceptance of credit card or debit card transactions. Some earlier methods for accepting payments were credit card slips sent to a merchant processing bank by mail or by automated response unit (ARU) via telephone. Some of these systems are still in use today but have been mostly replaced by electronic devices. These days, a business must be able to accept payment by debit or credit card. To get started, you will need a stand-alone, electronic credit card terminal. This terminal will allow you to "swipe" or enter credit card information via a keypad. Some terminals will also accept gift cards and will verify checks. The most popular credit card terminals consist of a modem, keypad, printer, magnetic stripe reader, power supply and a memory card. If your business includes on-line sales, you will need a payment gateway. This is a service that will authorize payments for your on-line clients. A payment gateway is pretty much the same as the point-of-sale terminals found in most retail stores. You'll also need a merchant account provider. This is a separate company from the payment gateway. A gateway has a virtual terminal that will allow a merchant to sign in securely and key in credit card numbers. They also will offer a shopping cart which connects to the gateway from the merchant's website. That's merchant services in a nutshell. There are many services to choose from, and each service may offer different options. You decide what is best for your business at this moment in time. If you are a new business, you may choose a service with the least amount of options. However, if you are already a large business and you are looking to improve the way you accept payments, check the various services available and see which will benefit you the most. Choosing a merchant services company can be confusing and time consuming, but it doesn't have to be. Check to see if a contract is required. Are there cancellation fees? Are there application fees? Does the company offer quick deposits of funds and guaranteed personal service? Do they offer free terminal programs? Are the processors PCI compliant? Last but not least, what kind of warranty is offered on the equipment? These are all questions that you need to consider. Your merchant services company should make your life easier and improve your business relationships with your customers. Make sure you can talk to a real person in real time. If the only way to contact your service is by email, you will not be a satisfied customer. This will reflect to your customers as well. Finally, ask questions. A superb merchant services company has nothing to hide. They are there to serve you!
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