MerchantPro Express Blog

Finding the Best Merchant Services Provider: The 3 Main Components

Posted by on Nov 13, 2015 11:00:00 AM
Merchant Services Provider

Business owners know that in order to be successful, they need to be able to accept debit and credit cards.

Hence their quest for the best merchant services company to process their payments. However, regardless of how important they know it is, business owners, like you, may not quite understand just what makes a merchant services company the best. While the company you team up with needs to be transparent and knowledgeable, like MerchantPro Express (MPX), the platform it processes payments through and the clearing bank that funds the transactions also play significant roles in the value and service level you receive from your merchant services provider.

Here’s a breakdown of the 3 components of merchant services.

 

Merchant Services Providers 1

  • MPX is a Merchant Acquirer.
  • Merchant Acquirers interact directly with business owners in order to set up accounts for credit card processing services, which allows businesses to accept transactions through all methods of payments—in-store and online— including:
    • Credit Cards
    • Debit Cards
    • Loyalty Cards
    • Gift Cards
    • Mobile Payments
  • The best Merchant Acquirers point out where potential clients are being overcharged and look for ways to drive down costs in order to save them money.

What to look for in a Merchant Acquirer:

  • Interest in how your business operates
  • Consultation and education about the confusing nature of merchant services pricing
  • Best rates and fees
  • 24/7 customer support
  • Seamless migration
  • Next day funding
  • Online reporting
  • Secure, modern solutions

 

Merchant Services Providers 2

  • First Data is MPX’s primary Processing Platform. They actually process the transactions.
  • Processing Platforms have relationships with Merchant Acquirers in order to sell their credit card processing solutions to business owners.
  • Without a Processing Platform, your customers wouldn't be able to pay with their credit or debit cards.
  • When a customer makes a payment with a credit or debit card, the Processing Platform will authorize the transaction.
  • They perform back-end batch settlements and send them to the Funding Bank.
    • A batch settlement refers to the group of transactions that are submitted to the Merchant Acquirer for completion.
  • The best Processing Platforms will offer first-rate solutions that not only protect against fraud, but are easy to use and efficient.

Whichever Merchant Acquirer a business owner teams up with will determine the types of solutions they will have access to. Having a merchant account with a company that doesn’t work with a good Processing Platform can put your business at risk because you won't receive the best merchant services available. Out-of-date and inconsistent credit card processing solutions will only frustrate both you and your customers, and may put your customers' data at risk.

 

Merchant Services Providers 3

  • Wells Fargo is MPX’s Funding Bank. They actually fund your bank account so you get paid for debit or credit card transactions.
  • Funding Banks receive batch settlements from Processing Platforms.
  • They make sure that the money you make from those transcations is transferred to your account.
  • Without a Funding Bank, you wouldn’t receive the money your business makes through card payment transactions.  

Choosing the right Merchant Acquirer affects what Funding Bank will be servicing your business as well. If it is unreliable or inefficient, your business will not be able to reach its full potential. Certain Funding Banks, like Wells Fargo, allow you to receive next day funding for debit and credit card transactions. But many do not!

 


 

Business owners should always remember these 3 components when looking for the best merchant services provider. A Merchant Acquirer is only as good as its Processing Platform and Funding Bank. Be sure to keep this information in mind when choosing a merchant services company for your business.

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