As businesses adopt electronic payment methods and demand for merchant services grows, new selling opportunities continue to arise. Since selling merchant services requires a blend of business insight, interpersonal skills, and industry expertise, it’s essential to be well-equipped.
Thankfully, this article explores how to sell merchant services and provides tips and tricks to master the art of effectively selling these services. Businesses can use these valuable insights and tools to build lasting relationships with clients, showcase the value of their services, and drive success in the competitive market.
What are merchant services?
Merchant services refer to financial services provided to a business, particularly those involved in retail or eCommerce, to enable them to accept various forms of payment from customers.
These services encompass a variety of tools that facilitate payment processing, including credit card and debit card transactions, electronic funds transfers, and other payment methods. Quality merchant services include point-of-sale (POS) systems, payment gateways, and customer support to handle financial transactions seamlessly.
Merchant services allow businesses to accept popular payment methods like credit cards, debit cards, ACH payments, and even digital wallets. With electronic payments becoming increasingly popular, accepting digital payment methods allows merchants to diversify their consumer base.
Merchant service providers are the companies and financial entities that provide these services to businesses accepting card payments.
What is a merchant services provider?
Merchant services providers (MSPs) specialize in selling credit card processing and provide the necessary software and services businesses need to accept electronic payments from their customers.
Along with more payment options for customers, merchant services providers offer transaction security, fraud prevention, chargeback management, and reporting and analytics tools. Using these reporting and analytics tools, merchants can track sales, manage inventory, and generate financial reports with insights into the business’s performance and overall stability.
Since security is a significant concern, merchant services providers protect customer data by using encryption methods to safely transmit customer information, minimizing the risk of data breaches.
In addition to these features, merchant services providers provide a robust suite of other payment solutions to streamline payment collections for merchants.
Here’s a list of the most prominent merchant services provided by MSPs:
- Payment gateways
- Mobile payment solutions
- POS systems
- Virtual terminals
- Payment integrations
Payment gateways serve as an online bridge that connects customers and businesses during digital transactions.
Payment gateways act as intermediaries safeguarding sensitive payment information as it moves between buyers and sellers over the Internet. When a customer purchases online, the payment gateway encrypts the provided payment details to ensure they’re secure. It then communicates with relevant financial institutions to verify and authorize the transaction.
Once authorized, the payment gateway confirms the successful transaction to the merchant and the customer, allowing funds to transfer securely.
Mobile payment solutions
Mobile payment solutions are digital platforms enabling individuals to make financial transactions using mobile devices. They allow users to initiate payments, transfer funds, and conduct various financial activities without physical currency or traditional payment methods like credit cards.
Mobile payment solutions offer various functionalities, including peer-to-peer transfers, online purchases, bill payments, etc. These solutions provide convenience and accessibility by allowing users to manage their finances on the go and make payments with a simple tap or click.
POS systems are technology-based solutions businesses use to manage and facilitate various aspects of their sales and transactions. These systems provide a centralized hub where customers’ purchases are processed and recorded.
POS systems typically consist of hardware and software components that allow merchants to ring up sales, calculate totals, accept various payment methods, and generate receipts.
Virtual terminals enable businesses to process payments remotely without needing physical terminals or card readers. Typically accessed through a web browser, virtual terminals allow merchants to input payment information to initiate transactions manually.
Businesses use virtual terminals to receive payments over the phone or through mail orders and for eCommerce websites to accept card-not-present transactions. This technology securely transmits payment data over the internet, employing encryption to protect sensitive information during transmission.
Virtual terminals often include features like recurring billing, secure data storage, and integrations with other business tools like invoicing and accounting software.
Payment integrations seamlessly sync with third-party payment services or gateways into a business’s existing software or online platforms (accounting, ERP, CRM, eCommerce, etc.).
Payment integrations enable businesses to accept various forms of electronic payments, such as credit and debit cards, digital wallets, or bank transfers, directly through their own applications or websites. These integrations eliminate the need for customers to navigate to external payment portals, enhancing user experience and maintaining a consistent branding and user interface.
By integrating payment solutions, businesses can efficiently manage transactions, track payments, and provide customers with a secure and streamlined checkout process.
While these tools and services help merchants adapt to evolving payment trends, competitive markets, and i