This is a complete guide to payment processing solutions. Learn how to choose the right payment processor and compare all the options on one page.
What is a Merchant Account Solutions, and Why Do I Need One?
A merchant account is a service that allows you to process credit card payments. It is a necessary component of any e-commerce business.
Merchant accounts are usually free but usually, come with high processing fees and hidden costs.
These can be classified into two categories: managed and unmanaged. Managed accounts offer more features, such as fraud prevention tools, but they also come with higher rates and fees. Unmanaged accounts are cheaper but don’t offer the same protection or features.
Merchant account solutions are necessary for businesses that want to accept credit card payments. They provide a way for businesses to accept customer payments and get paid for the products or services they sell.
One thing to remember is that merchant account solutions can be complicated and time-consuming, but it is essential for any business that wants to accept credit card payments.
Summary: Top 3 Alternatives to Stripe
Square: It has the best online payment services and credit card processing systems for local establishments. Starts at $0
Clover: It provides POS software, equipment, and fast credit card processing. Starts at $0.
Venmo: It offers instant payments and social features for businesses. With really low processing fees.
Common Terms in Payment Processing Solutions Explained
Payment processing solutions are a necessary part of any e-commerce business. They help you process payments for products or services you sell to your customers. The most critical part of these solutions is the payment gateway, which is the software that handles all the transactions from beginning to end. The gateway connects your website or mobile app with your bank account so that you can send and receive money from your customers’ credit cards, debit cards, and bank accounts.
Some other standard terms in this industry are card processors, gateways, PCI compliance, EMV chip cards, tokenization services, and more!
The common terms in the industry are explained below:
Payment Gateway: The gateway acts as an intermediary between the customer and the merchant and processes payments from customers to merchants in various ways. It also provides a secure link for transmitting sensitive data and performs fraud checks to avoid chargebacks or other problems.
Merchant Account: A merchant account is an arrangement between a business and its bank to accept credit cards or other electronic payments from customers through the bank’s processing system. This account requires an annual fee, which varies depending on the card type the business accepts and other factors such as monthly transaction volume and customer complaints.
Transaction Fees: Transaction fees are charges assessed by banks for processing credit card transactions, which can be flat rates.
Credit card processor: A company that handles the process of taking a customer’s credit card information and passing it on to the bank for authorization.
Merchant account provider: A company that provides merchants with a merchant account so they can accept payments from customers.
- Electronic Funds Transfer (EFT): The transfer of money from one bank account to another using electronic means like wire transfers or Automated Clearing House (ACH) transactions.
How to Choose the Right Merchant Services Provider?
Merchant services are the backbone of any eCommerce business, and choosing the right provider is crucial to the success of any business. There are many factors that you need to consider before you make your decision on which merchant services provider to go with.
There are two main factors to consider when choosing a merchant services provider. These are the rates and the customer service.
The rates will depend on what type of merchant you are and what your business needs. For example, if you have a high volume of transactions, you may be better off with a provider with lower rates for high-volume businesses.
Customer service is also crucial as it can make or break your business relationship with your customer. This factor’s importance will depend on your business type and how many contacts you have with customers. Finding a provider that can offer good customer service at all times is important because customer satisfaction is key to any successful business.
Payment Processing Solutions by Savvy Merchant
Payment processing solutions are the backbone of the modern economy. They allow merchants to accept credit card payments, debit cards, and cash. They also allow customers to purchase with their bank accounts or credit cards.
Moreover, the merchant account is a crucial part of the process for any business. It is the gateway to accepting payments for goods and services. The merchant account can be as simple as a credit card reader or as complex as an entire suite of products and services that allow your business to accept payments in different ways.
That is why Savvy Merchants have many options when it comes to payment processing solutions. Also, Savvy Merchant Services is a payment processing solutions provider that offers credit card processing, point-of-sale systems, e-commerce solutions, and more. Contact now!